EUR/USD tumbles further below 1.22 on downbeat IFO

• The pair accelerates the drop to fresh lows sub-1.2200 levels.
• DXY resumes the upside, tests peaks at/above the 91.00 mark.
• German IFO survey came in below expectations in April.

The single currency saw its decline accelerated today and is now forcing EUR/USD to drop to fresh lows in the vicinity of the 1.2180 region.

EUR/USD focused on 1.2165/55

The selling sentiment remains well and sound around the European currency during the first half of the week, motivating spot to quickly leave behind the critical support at 1.2200 the figure and therefore refocus on the more relevant contention in the 1.2165/55 band.

EUR shed further ground after the German IFO came in below expectations for the current month, showing Business Expectations, Current Assessment and Business Climate all missing initial forecasts at 98.7, 105.7 and 102.1, respectively.

On the USD-side, the buck’s march north stays unabated so far today, adding gains to the ongoing rally and flirting with fresh multi-week tops in the 91.00 area, as investors appear to have re-shifted their attention to monetary policy and prospects of further tightening by the Federal Reserve.

Data wise across the pond, New Home Sales, the S&P/Case-Shiller Index and the CB’s Consumer Sentiment for the month of April are all due later in the NA session.

EUR/USD levels to watch

At the moment, the pair is losing 0.13% at 1.2193 facing immediate contention at 1.2184 (low Apr.24) seconded by 1.2165 (low Jan.18) and finally 1.2153 (low Mar.1). On the upside, a break above 1.2314 (21-day sma) would target 1.2321 (10-day sma) en route to 1.2414 (high Apr.17).