EUR/USD retakes 1.2300 and beyond

Spot regained the 1.2300 handle.
Broad-based USD-selling supporting the move.
USD CPI, retail sales next of relevance.

Pablo Piovano FXStreet

The European currency is extending its positive start of the week on Tuesday and is now lifting EUR/USD back above 1.2300 the figure.

EUR/USD up on risk-on rally

The generalized better mood around the risk-associated universe keeps weighing on the buck during the first half of the week, pushing spot further north of the 1.2300 limestone.

At the same time, the risk-rally is forcing the US Dollar Index (DXY) to break below the critical support at 90.00 the figure for the first time since February 2 despite some positive headlines from the US political scenario.

In the meantime, the pair appears to have carved a bottom in recent lows in the 1.2200 neighbourhood ahead of tomorrow’s key releases in the US docket: inflation figures tracked by the CPI and retail sales, both for the month of January.

EUR/USD levels to watch

At the moment, the pair is up 0.29% at 1.2328 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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