EUR/USD holds steady below 1.2100, awaits Eurozone/US data
- EUR/USD in a consolidative mode, eyeing for a big move above 1.21.
- The US dollar holds the lower ground amid an upbeat market mood.
- Eurozone Services PMIs eyed ahead of the key US data flow.
EUR/USD is flatlined below 1.2100, consolidating Tuesday’s sharp rebound from four-week lows of 1.1992. The bulls take a breather, gathering pace in order to recapture the 1.21 level on a sustained basis.
The main currency pair is holding at higher levels, courtesy of the bearish tone seen around the safe-haven US dollar, as the risk tone remains upbeat amid vaccine and stimulus hopes.
The greenback slipped from monthly tops on Tuesday after the risk sentiment recovered on retreating Treasury yields, which eased off the pressure on the Fed to act amid concerns about overheating of the economy.
On the euro-side of the story, the mixed Eurozone CPI data failed to deter the EUR bulls, as the dynamics around the yields and dollar remain the main market motor.
Attention now turns towards the Euro area Final Services PMIs ahead of the US ADP and ISM Services PMI releases for fresh trading impetus.
EUR/USD: Technical levels
“The immediate resistance is seen at 1.2139 (50-day SMA), followed by the Feb. 25 high of 1.2243. A daily close below the 100-day SMA, currently at 1.2024, would invalidate the bullish outlook,” FXStreet’s Analyst Omkar Godbole notes.
EUR/USD: Additional levels