EUR/USD pushes higher to 1.2350, fresh daily highs

Spot clinches 1.2350, 4-day peaks.
USD faces further downside pressure.
US CPI, retail sales next on tap on Wednesday.

Pablo Piovano FXStreet

The selling interest around the greenback continues to be the sole driver behind today's up move in EUR/USD to the 1.2350 area, or fresh 4-day toops.

EUR/USD boosted by USD-selling

Spot keeps pushing higher during the first half of the week, always backed by the renewed and strong offered bias surrounding the greenback in a context of upbeat sentiment in the risk-associated universe.

Further news regarding the buck saw little-to-none reaction to President Trump’s federal budget proposal for the fiscal year 2019, including a boost in infrastructure and domestic spending. The proposal, however, has already been in centre stage as it could increase the deficit in the next years and remains surrounded by a considerable scepticism among both Republicans and Democrats.

Looking ahead, US inflation figures tracked by the CPI and retail sales for the month of January will be the salient events this week, both due tomorrow.

EUR/USD levels to watch

At the moment, the pair is up 0.44% at 1.2346 and a breakout of 1.2351 (10-day sma) would target 1.2434 (high Feb.6) en route to 1.2524 (high Feb.1). On the flip side, the immediate support emerges at 1.2206 (low Feb.9) seconded by 1.2167 (50% Fibo of the 2014-2017 drop) and finally 1.2165 (low Jan.18).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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