Bulls Break Through 5-Day Congestion Barrier
- EUR/USD regains upside traction and approaches 1.2160.
- The German Economic Sentiment improves to 71.2 in February.
EUR/USD remains bid and targets 1.2190
EUR/USD extends the daily gains to the vicinity of 1.2160 following positive results from the euro docket while further weakness continues to hurt the greenback.Indeed, the Economic Sentiment in Germany improved further to 71.2 for the current month (from 61.8).
The Euro is attacking the upper border of five-day congestion (1.2081/1.2150) in early Tuesday's trading. Extended near-term sideways action is capped by Fibo 50% retracement of 1.2350 pullback and with eventual break here to signal continuation of recovery leg from Feb 5 correction low.
EUR/USD still faces a tough barrier in the mid-1.2100s. The rebound from 2021 lows near 1.1960 follows the constructive outlook for the pair in the longer run. Critical resistance awaits at 1.2150, which has capped EUR/USD on Tuesday and also last week – a double-top. Further above, 1.2190 and 1.2225 are eyed.
Some support is at the daily low of 1.2125, followed by 1.2080, a swing low from last week. A more significant cushion is at 1.2055.
