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