EUR/USD analysis: scope to surpass 1.2400

Valeria Bednarik FXStreet

EUR/USD Current price: 1.2380

ECB's Lane said policymakers are not concerned about current euro levels.
US inflation kept growing steadily in February but not at a scary pace.

The American dollar extends its early slide against most of its major rivals after the release of US CPI figures for February, which resulted as expected, up yearly basis 1.8%. Inflation continues advancing steadily, and while not impressive enough to trigger dollar demand, it also grants stability to equities, as there are no fears of an acceleration in the pace of rate hikes. The EUR/USD pair advanced up to 1.2385, its highest since last Thursday, further backed by ECB's Lane words, who said that there's no concern among policymakers, about the current euro level.

Ahead of Wall Street's opening, the pair holds on to gains, and is poised to extend its advance as its currently surpassing the 1.2380 region, where it has the 23.6% retracement of its latest weekly bullish run, while it has also managed to surpass all of its moving with a strong volume candle in the 4 hours chart. Technical indicators accelerated north above their mid-lines, further indicating more gains ahead are likely. The pair will likely wait now for US opening, yet a break above the mentioned high will likely result in an advance beyond the 1.2400 figure.

Support levels: 1.2265 1.2220 1.2190

Resistance levels: 1.2385 1.2420 1.2450

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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