EUR/USD parked around 1.0880 ahead of IFO

The single currency is trading almost unchanged vs. the buck on Tuesday, taking EUR/USD to the comfort zone around 1.0880.

EUR/USD looks to IFO

The pair is looking to stabilize in the lower bound of the recent range, with gains so far capped around 1.0900 the figure and quite decent support in the 1.0860 region.

In the meantime, the greenback keeps its buoyancy well and sound during the first half of the week, yesterday supported further by comments by Chicago Fed C.Evans, who advocated for three rate hikes in the upcoming year.

Later in the European morning, the German IFO is expected to show some small improvements in October, adding to yesterday’s auspicious PMIs in the core euro area. In addition, President M.Draghi will give a lecture on ‘Stability, Equity and Monetary Policy’ in Berlin.

Across the pond, the S&P/Case-Shiller index is due followed by the IBD/TIPP Economic Optimism index and the Consumer Confidence gauge tracked by the Conference Board.

EUR/USD levels to watch

The pair is now up 0.04% at 1.0884 facing the next resistance at 1.0948 (2014-2016 resistance line) followed by 1.1012 (7-month resistance line) and then 1.1041 (post-ECB spike Oct.20). On the other hand, a breakdown of 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015).