Strategists at ING note that the EUR/USD rally is showing increasing signs of fragility, the latest triggered by some disappointing eurozone PMIs on Friday, with the services gauge pouring cold water on the recent data excitement. 

"Tomorrow’s Ifo indicator in Germany may be pivotal for the euro to avert another leg lower, with positive signals from manufacturing possibly offsetting the slump in services."

"While there is a chance of the correction gaining momentum and pushing the pair briefly below 1.1700 this week, the factors that drove the recent EUR/USD strength still look in place and we maintain our one-month target at 1.20."