FXStreet (Mumbai) - The bid tone around the EUR/USD keeps getting better as we progress towards the early European trades, with the Ifo surveys next in focus.

EUR/USD consolidates above hourly 20-SMA

Currently, the EUR/USD pair trades 0.20% higher at fresh session highs of 1.0819, heading gradually towards hourly 50-SMA at 1.0841. The main currency extends its consolidative mode into early Europe and hovers near session tops, gathering pace for further upside towards 1.0850 region.

With the Asian equities paring gains, the risk-on moods appear to have waned a bit and hence lift the demand for the funding currency euro. Moreover, the gains in the EUR/USD pair can be also partly attributed to a broadly lower USD as well as to the extension of the post-ECB correction. Last week,

Attention now remains on the German IFO surveys to provide fresh incentives on the EUR moves, while ECB Chief Draghi’s speech due later in the NY session will be closely eyed.

The headline Ifo Business Climate Index in Germany is expected to tick down to 108.5 in January, from the 108.7 booked last month. The Current Assessment sub-index is seen at 112.7 from the 112.8 booked a month ago.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance is seen at 1.0841/50 (1h 50-SMA/ round number). A break beyond the last, doors will open for a test of 1.0900 (round number/ daily high). On the flip side, the immediate support is placed at 1.0803 (Jan 13 Low), below which 1.0787/77 (daily S2/ Jan 21 Low) could be tested.