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EUR/USD firmer, in highs near 1.0840

FXStreet (Edinburgh) - The single currency’s upside momentum remains well and sound after the release of the German IFO, with EUR/USD navigating the 1.0830/40 area for the time being.

EUR/USD firmer on risk aversion

Spot has ultimately ignored the results of the German IFO for the month of January, coming in below expectations in all of its components. In the meantime, a fresh wave of risk aversion has been triggered following the opening bell in Euroland today, sending spot to test session peaks in the vicinity of 1.0840.

Data wise across the pond, the manufacturing gauge tracked by the Dallas Fed index is only due, with expectations gyrating around -15.0 for the current month.

EUR/USD levels to watch

The pair is now advancing 0.23% at 1.0822 and a break above 1.0862 (20-day sma) would target 1.0983 (100-day sma) en route to 1.1059 (high Dec.15). On the flip side, the immediate support aligns at 1.0777 (post-ECB low Jan.21) followed by 1.0737 (38.2% Fibo of 1.0538-1.1059) and finally 1.0709 (low Jan.5).

German climate index falls higher than expectation in January

German Ifo Business Climate Index dropped to 107.3 in January, lower than expectation and below the 108.7 reading seen in December. Current assessment index dropped to 112.5, down from 112.8. It was expected to stay unchanged in January. The expectation index on the other hand fell sharply to 102.4, lower than the previous reading of 104.7 and also below expectation.
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EUR/JPY: Sell-off from daily high stalls at 128.00

The sell-off in the EUR/JPY from the daily high of 128.49 appears to have stalled around 128.00 levels after the German IFO readings missed estimates.
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