Investing.com - Worse-than-expected pending home sales numbers in the U.S. sent investors selling the dollar for profits on Monday, which gave the euro room to rise against the greenback.
In U.S. trading, EUR/USD was up 0.08% at 1.3440, up from a session low of 1.3427 and off a high of 1.3442.
The pair was likely to find support at 1.3421, Friday's low, and resistance at 1.3485, Thursday's high.
The dollar took a hit on Monday after the National Association of Realtors reported that U.S. pending home sales fell 1.1% in June, disappointing expectations for a 0.5% gain.
The data fueled concerns that the U.S. housing sector may be battling headwinds, which sent investors selling the greenback for profits ahead of the Federal Reserve's policy statement on Wednesday and the July jobs report due out on Friday.
The dollar firmed last week on upbeat durable goods, weekly jobless claims and new home sales reports, though Monday's data prompted investors to take a breather with the U.S. currency.
Investors were also awaiting final data on U.S. second-quarter growth on Wednesday.
Still, the euro came under pressure of its own, as European Central Bank officials have said they will considering loosening policy further to ensure recovery stays on track.
On Friday, the Ifo Institute for Economic Research reported that its German business climate index fell to a nine-month low of 108.0 this month, down from 109.7 in June. Analysts had expected the index to tick down to 109.4 in July.
A separate report showed that the Gfk German consumer climate index rose to a seven-and-a-half-year high of 9.0 this month, up from a reading of 8.9 in June. Analysts had expected the index to remain unchanged in July.
Elsewhere, the euro was flat against the pound, with EUR/GBP unchanged at 0.7912, and up against the yen, with EUR/JPY up 0.07% at 136.85.
On Tuesday, the U.S. is to publish reports on house price inflation and consumer confidence.