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  • The pair has started the week on a soft footing near 1.1720.
  • The greenback appears bid always looking to trade jitters.
  • German IFO survey next of relevance in the euro area.

The sentiment around the risk-on space is shrinking at the beginning of the week, prompting EUR/USD to retreat to the 1.1730/20 band, or daily lows.

EUR/USD looks to IFO, risk trends

After briefly testing fresh multi-week tops beyond 1.1800 the figure on Friday, spot is now trading on the defensive for the second session in a row as the buying interest around the buck prevails in the global markets.

In fact, the risk-off mood kicked in again on Monday after China cancelled its trade talks with the US originally scheduled for later this week. Consensus among market participants sees trade talks likely to resume after US midterm elections in November.

Looking ahead, the German IFO survey is due later in the European morning, while President M.Draghi is expected to make an Introductory Statement at the ECON Hearing of the European Parliament in Brussels.

Across the pond, the Chicago Fed National Activity Index will be the sole release later today.

EUR/USD levels to watch

At the moment, the pair is losing 0.13% at 1.1734 facing the next support at 1.1684 (10-day SMA) followed by 1.1657 (21-day SMA) and then 1.1526 (low Sep. 10). On the upside, a breakout of 1.1804 (high Sep.21) would target 1.1853 (monthly high Jun.14) en route to 1.1947 (200-day SMA).