EUR/USD moves higher, closer to 1.2400

  • The pair extends the daily upside to the proximity of 1.2400.
  • USD-weakness takes DXY to re-test lows in the 89.40 area.
  • US Retail Sales expanded more than expected in March.

The greenback has intensified the downbeat momentum at the beginning of the week and has helped EUR/USD to clinch fresh tops in levels just shy of the key barrier at 1.2400 the figure.

EUR/USD up on USD-selling

The pair staged a moderate rebound and re-visited the area near the 1.2400 handle today in response to a significant pullback in the greenback, which dropped and tested once again last week’s lows in the 89.40 zone.

Low volatility (as per the VIX performance) and sellers returning to the buck motivated spot to extend the optimism at the beginning of the week, although it seems a tough barrier emerged in the 1.2400 neighbourhood for the time being.

In the US data space, better-than-expected results from March’s Retail Sales failed to ignite any meaningful reaction in the greenback so far. On the opposite side, the Empire State manufacturing gauge and the NAHB index both came in below initial estimates.

EUR/USD levels to watch

At the moment, the pair is gaining 0.44% at 1.2384 facing the immediate resistance at 1.2397 (high Apr.11) followed by 1.2478 (high Mar.27) and then 1.2538 (high Jan.25). On the downside, a breakdown of 1.2300 (low Apr.12) would target 1.2214 (low Apr.6) en route to 1.2153 (low Mar.1).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.