EUR/USD stays in lows near 1.2460 post-US data

Spot navigates lows near 1.2460.
USD bid, now targets 89.00.
US housing data came stronger.

Pablo Piovano FXStreet

The renewed buying interest around the buck keeps weighing on EUR/USD and is now dragging it to the area of daily lows around 1.2460.

EUR/USD offered on stronger USD, data

The pair gained extra downside after US housing starts and building permits surprised markets to the upside during January, expanding 9.4% MoM (or by 1.326 million units) and 7.4% MoM (or by 1.396 million units), respectively.

Additional US data saw export prices up 0.8% inter-month during the same period and import prices rising at a monthly 1.0%.

Spot, in the meantime, already shed around a cent from earlier multi-year tops in the mid-1.2500s, although the bullish note seems unchanged for the time being, with the immediate targets in the boundaries of the 1.2600 handle.

Later in the session, preliminary US consumer sentiment gauged by the Reuters/Michigan index is expected.

EUR/USD levels to watch

At the moment, the pair is losing 0.34% at 1.2462 facing immediate support at 1.2372 (21-day sma) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the upside, a breakout of 1.2555 (2018 high Feb.16) would target 1.2598 (61.8% Fibo of the 2014-2017 drop) en route to 1.2886 (high Oct.15 2014).

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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