EUR/USD gains capped around 1.2550
- Spot clinches fresh YTD tops around 1.2550.
- USD-weakness still in full play.
- US 10-year yield around 2.91%.
The risk-rally keeps fuelling the upside in EUR/USD, this time visiting the 1.2550/55 band, or fresh 2018 tops.
EUR/USD in multi-year peaks
He pair climbed to levels last seen in December 2014 around 1.2550 and now remains poised to challenge the critical resistance area near 1.2600 the figure, where sits a Fibo retracement of the 2014-2017 drop.
The sell off in the greenback has accelerated in recent hours without any particular catalyst and despite yields of the key US 10-year reference are just a tad lower than recent multi-year tops around 2.95%.
In the data space, January’s housing starts, building permits and US consumer sentiment are all due later in the NA session.
EUR/USD levels to watch
At the moment, the pair is up 0.26% at 1.2537 and a breakout of 1.2555 (2018 high Feb.16) would target 1.2598 (61.8% Fibo of the 2014-2017 drop) en route to 1.2886 (high Oct.15 2014). On the flip side, the immediate support emerges at 1.2372 (21-day sma) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18).