EUR/USD stays near 1.2350, 4-year tops

The increasing selling pressure around the greenback continues to prop up the upside momentum in EUR/USD, this time to levels last traded in December 2014 around 1.2350/60.

EUR/USD next stop 1.2432?

The US Dollar is extending its downside today after US Treasury Secretary S.Mnuchin favoured a weaker USD at his interview in BBG-TV. Mnuchin’s comments followed the recently announced measures by the White House, imposing tariffs to washing machines and solar panels.

The generalized bearish sentiment around the buck has already motivated DXY to dip to multi-year lows around 89.50, at the same time opening the door for extra gains in spot with the immediate target in the 1.2430 area, 200-month sma.

Back to the euro bloc, mixed results from advanced PMIs for the current month also lent some support to the single currency and reinforced the strong start of the year for the region.

Later in the session, US flash manufacturing/services PMI by Markit along with December’s existing home sales and the usual weekly report on US crude oil supplies by the EIA are also due.

EUR/USD levels to watch

At the moment, the pair is up 0.37% at 1.2344 facing the next hurdle at 1.2356 (high Jan.24) seconded by 1.2432 (200-month sma) and finally 1.2571 (high Dec.16 2014). On the flip side, a drop below 1.2229 (10-day sma) would target 1.2165 (low Jan.18) en route to 1.2102 (21-day sma).