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EUR/USD climbs near 1.3780 on IFO

FXStreet (Edinburgh) - The shared currency is trading in an upbeat tone at he beginning of the week, pushing the EUR/USD to session highs near 1.3780 after better IFO.

EUR/USD eyes on 1.3800?

The IFO series surprised investors on Monday, exceeding previous estimates in all of its components for the month of February. Business Climate and Current Assessment also bettered previous prints while Expectations came in a tad lower than January’s. Next on tap will be EMU’s consumer prices, expected at 0.7%YoY. Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “continues to hold over the near term support line, which lies at 1.3724 today, while this holds the market remains slightly bid, however we continue to view the upside as limited”.

EUR/USD significant levels

At the moment the pair is up 0.21% at 1.3749 with the immediate resistance 1.3777 (2014 high Jan.2) followed by 1.3800 (psychological level). On the flip side, a breakdown of 1.3702 (low Feb.21) would expose 1.3691 (10-d MA) and finally 1.3685 (low Feb.20).

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According to data published on Monday by the CESifo Group, German IFO – Business Climate increased from 110.6 in January to 111.3 in February. Market consensus pointed to no change.
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