He EUR/USD it is losing some of the gains it posted in the early hours of Wednesday that led to a new two-day high of 1.2222 at the European open.
The pair has retraced more than 35 pips in the last hour, returning below 1.2200 to a daily low of 1.2185. At time of writing, the euro is trading against the dollar above 1.2185, losing 0.16% on the day.
The euro’s decline coincides with a rally in the greenback, whose DXY index has hit three-day lows at 89.92 at the start of the European session, but has now risen to 90.16, gaining 0.15% daily. Meanwhile, US 10-year bond yields continue to decline, currently sliding to 1.11% after hitting 1.18% yesterday.
The operators of the crossing are waiting for the speech of Christine Lagarde, President of the ECB, as it could move the euro. Later, the Eurozone will release its industrial production data for November, which is expected to rise a slight 0.2%. Later, the US will reveal its inflation figures for December, expecting a rebound to 0.4% in the monthly reading. Richard Clarida and Lael Brainard, members of the Fed, will speak at the end of the day.
EUR / USD levels
If you keep going backwards, the first support is at 1.2132, the minimum of January 11, followed by the 1.2120 / 25 zone, where the minimums of December 14, 15 and 16 are concentrated. If it breaks below, the fall may extend to 1.2058, the December 9 floor.
Upward, the first bullish target is at 1.2227, high of January 11, en route to resistance 1.2284, high of January 8. Higher up expects 1.2349, a maximum of January 6 and the highest level reached since April 2018.
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