EUR/USD pushing higher, closer to 1.2300

The pair adds gains and now targets the key barrier at the 1.2300 handle.
The US Dollar trades on the defensive, keeps the 90.00 handle.
EMU’s Producer Prices rose 0.4% MoM in January, U-Mich next on tap.

Pablo Piovano FXStreet

The shared currency is extending yesterday’s recovery and is now lifting EUR/USD to the vicinity of the key 1.2300 handle.

EUR/USD propped up by risk trend, looks to US data

The pair is advancing for the second consecutive session so far on Friday, at the same time recording fresh 3-day tops in the area closer to the key barrier at 1.2300 the figure.

The up move in spot stays on the back of a renewed offered bias around the greenback, as investors are cashing up recent strong gains following the hawkish testimonies of Fed’s J.Powell and solid results from the US docket.

On the data front, Producer Prices in the euro area rose at a monthly 0.4% in January and 1.5% over the last twelve months. Across the pond, the final print of the Reuters/Michigan index will be the only publication (99.5 exp.).

EUR/USD levels to watch

At the moment, the pair is gaining 0.19% at 1.2287 and a breakout of 1.2329 (21-day sma) would target 1.2390 (short-term resistance line) and then 1.2557 (2018 high Feb.18). On the flip side, immediate contention emerges at 1.2206 (low Feb.9) seconded by 1.2195 (low Jan.18) and finally 1.2153 (low Mar.1).

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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