EUR/USD jumps to the highest level since January, beyond mid-1.2200s

EUR/USD gained strong positive traction for the second straight day amid sustained USD selling.
Dovish Fed expectations, sliding US bond yields, risk-on mood weighed heavily on the greenback.
Sustained move beyond the 1.2235-40 region might have already set the stage for further gains.

Haresh Menghani FXStreet

The EUR/USD pair caught some fresh bids during the early European session and shot to the highest level since January, around the 1.2260-65 region in the last hour.

The pair added to the previous day's positive move and gained strong follow-through traction for the second consecutive session on Tuesday amid the prevalent US dollar selling bias. Investors now seem aligned with the Fed's view that inflation in the US is likely to be transitory and have been scaling back expectations about an inflation-driven rate hike. This was seen as a key factor that continued acting as a headwind for the greenback.

In fact, the key USD Index tumbled to fresh multi-month lows, around mid-89.00s and was further pressured by an extension of the recent downfall in the US Treasury bond yields. Apart from this, the underlying bullish sentiment in the financial markets further contributed to the heavily offered tone surrounding the safe-haven greenback.

Meanwhile, the latest leg of a sudden spike over the past hour or so could be attributed to some technical buying on a move beyond the 1.2235-40 resistance zone. This might have already set the stage for a further near-term appreciating move. Hence, a subsequent strength towards reclaiming the 1.2300 mark, en-route YTD tops around mid-1.2300s, looks a distinct possibility.

Technical levels to watch

EUR/USD

Overview
Today last price	1.2261
Today Daily Change	0.0046
Today Daily Change %	0.38
Today daily open	1.2215

Trends
Daily SMA20	1.2122
Daily SMA50	1.199
Daily SMA100	1.2042
Daily SMA200	1.1969

Levels
Previous Daily High	1.223
Previous Daily Low	1.2172
Previous Weekly High	1.2245
Previous Weekly Low	1.2126
Previous Monthly High	1.215
Previous Monthly Low	1.1713
Daily Fibonacci 38.2%	1.2208
Daily Fibonacci 61.8%	1.2194
Daily Pivot Point S1	1.2181
Daily Pivot Point S2	1.2148
Daily Pivot Point S3	1.2124
Daily Pivot Point R1	1.2239
Daily Pivot Point R2	1.2263
Daily Pivot Point R3	1.2297

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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