- EUR/USD extends the rebound to the mid-1.2100s.
- Immediately above emerges the 1.2170 region as the next target.
- The EUR/USD made a bullish bounce at 61.8% Fibonacci earlier this week.
EUR/USD holds the higher ground above 1.2100 despite mixed Euro area Preliminary PMIs. The spot benefits from a broadly weaker US dollar while higher Treasury yields could limit the advance ahead of US PMIs.
EUR/USD manages to regain the 1.2100 mark and above on Thursday. The move meets initial hurdle at the 55-day SMA near 1.2150. Further up aligns a minor resistance near 1.2170, weekly tops. A breakout of this area could lead to a probable visit to the weekly highs near 1.2190 (January 22). The selling pressure is expected to subside above the latter, allowing for a probable test of the YTD highs in the 1.2350 zone.
Some support awaits at 1.2080, the daily low, followed by 1.2055, which is a critical cushion and a separator of ranges. Further down, 1.2030 and 1.20 await EUR/USD.
