At the same time, the upside potential was limited amid the risk aversion sparked by renewed fears about the outlook for the global economy as a result of inversion of the 3-month and 10-year Treasury yields for the first time since 2007.
The common currency derived additional support from better-than-expected German Ifo survey which showed that business climate improved for the first time after six consecutive months of declines, while expectations gauge rose to 95.6 versus 94.0 expected.
In the short term, the pair’s direction will depend on the general sentiment towards the dollar as well as on the investor mood in the global financial markets. On Tuesday, EURUSD has been trading under some pressure as investors remain cautious despite the risk sentiment has improved somewhat.
From a technical perspective, the pair needs to get firmly back above the 1.13 figure and hold above the 1.1285 intermediate support. Technical indicators in the short-term charts are holding in the bearish territory.