EUR/USD keeps rising, around mid-1.2300s after mixed EZ PMIs

The greenback selling remains unabated through the early European session and pushed the EUR/USD pair to fresh 3-year highs, closer to mid-1.2300s.

The pair built on its recent gains and continues to benefit from a broadly weaker USD. In fact, the key US Dollar Index sank farther below the 90.00 handle and has been one of the key factors behind the pair's strong up-move over the past five weeks. 

The greenback selling intensified in the past over or so after the US Treasury secretary Steven Mnuchin, speaking on the sidelines of the World Economic Forum (WEF) in Davos, said that a weaker dollar is good for the US. 

Meanwhile, the incoming EZ economic data has been reinforcing expectations of continued economic growth in the region and remained supportive of the strong bid tone surrounding the shared currency. 

Today's slightly weaker than expected German/French and composite EZ flash manufacturing PMI prints, which to were largely negated by upbeat services PMIs, also did little to dampen the prevalent strong bullish sentiment. 

Later during the NA session, the second-tier US economic data - flash PMIs (manufacturing and services) and existing home sales data, would now be looked upon for some fresh trading impetus.

Technical levels to watch

The ongoing momentum seems strong enough and is likely to get extended towards 1.2375 level en-route the 1.2400 handle. On the downside, immediate support is now pegged near 1.2320-15 area and is closely followed by the 1.2300 handle, below which the pair could correct further towards 1.2265-60 support area.