EUR/USD trims losses, back around 1.2270

The pair staged a rebound from lows around 1.2250.
DXY is now coming under pressure after testing tops near 90.30.
US Initial Claims and Trade Balance figures next on tap.

Pablo Piovano FXStreet

After bottoming out in the mid-1.2200s earlier in the session, a now softer tone around the greenback is allowing EUR/USD to rebound to the 1.2270/75 band.

EUR/USD now looks to data

The pair keeps the familiar range around 1.2270 on Thursday, coming up after briefly testing the mid-1.2200s as some selling pressure emerged in the buck following fresh daily tops in the US Dollar Index.

EUR paid little attention to disappointing final Services PMIs and Retail Sales in Euroland for the month of February, while Producer Prices surprised to the upside during the same period (0.1% MoM and 1.6% YoY).

Later in the session, the usual US Initial Claims is due seconded by February’s Trade Balance figures and the speech by Atlanta Fed R.Bostic (voter, centrist).

EUR/USD levels to watch

At the moment, the pair is flat at 1.2277, facing immediate contention at 1.2249 (low Apr.3) followed by 1.2241 (low Mar.21) and finally 1.2206 (low Feb.9). On the upside, a break above 1.2327 (10-day sma) would target 1.2478 (high Mar.27) en route to 1.2537 (high Jan.25).

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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