EUR/USD flirting with lows, around mid-1.2300s

Haresh Menghani FXStreet

• Persistent USD buying continues to weigh on the major.
• Traders shrugged off today’s upbeat ZEW surveys.
• FOMC/ECB meeting minutes to provide a fresh directional impetus.

The EUR/USD pair remained heavily offered through the mid-European trading session and is currently placed at the lower end of its daily trading range, just below mid-1.2300s.

After yesterday's good two-way moves, the pair resumed with its corrective slide from fresh three-year tops, touched on Friday, and continued losing ground on Tuesday amid a strong follow-through US Dollar buying interest.

The USD recovery move from last week's over three-year lows got an additional boost from a goodish pickup in the US Treasury bond yields and was eventually seen weighing on the major for the third consecutive session.

Meanwhile, the shared currency failed to benefit from better-than-expected German/Euro-area composite Euro-area ZEW Economic Sentiment Surveys for February, with the greenback price dynamics acting as an exclusive driver of the pair's momentum, so far.

Today's US economic docket lacks any major market-moving economic releases and hence, the upcoming monetary policy meeting minutes from the FOMC and the ECB, due on Wednesday and Thursday, would be looked upon to determine the pair's near-term trajectory.

Technical levels to watch

A follow-through selling pressure is likely to accelerate the fall towards the 1.2300 handle before the pair eventually drops to test 1.2245 horizontal support. On the upside, any recovery attempt might now confront fresh supply near the 1.2370-75 region, above which a bout of short-covering could lift the pair beyond the 1.2400 handle towards its next major hurdle near the 1.2430-35 zone.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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