EUR/USD turned negative near 1.2480

Spot reverses the earlier upside to 1.2480.
USD now bid around 88.70.
US data next on tap.

Pablo Piovano FXStreet

The now better tone around the greenback is forcing EUR/USD to abandon the area above 1.2500 the figure and return to the 1.2485/80 band.

EUR/USD off YTD peaks near 1.2550

After climbing as high as the mid-1.2500s during the Asian trading hours – levels last visited in December 2014 – spot met a wave of selling orders and has now receded to the 1.2485/80 band, turning negative for the day.

The greenback, in the meantime, has recovered the bid bias although the extension of the upbeat sentiment remains to be seen.

The down move in spot came in line with the drop in yields of the US 10-year benchmark, which are currently trading in daily lows around 2.88%, down from peaks near 2.95% seen earlier in the week.

In the data space, January’s housing starts, building permits and US consumer sentiment are all due later in the NA session.

EUR/USD levels to watch

At the moment, the pair is losing 0.17% at 1.2483 facing immediate contention 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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