EUR/USD tests 1.2400, fresh 3-year tops

EUR/USD managed to record fresh multi-year tops around 1.2400 the figure on Wednesday as the sell off around the greenback keeps gathering traction.

EUR/USD focus on ECB

The pair keeps pushing higher today amidst an increasing selling sentiment around the buck.

In fact, USD-sellers have been flowing into the markets today, particularly after US Treasury Secretary S.Mnuchin favoured a weaker Dollar in earlier comments at the WEF in Davos.

Mixed flash PMIs in the euro area also collaborated with the EUR’s upside, while advanced US manufacturing PMI surprised to the upside for the month of January. Further US data saw existing home sales dropping 3.6%, or to 5.57 million units in December, below initial estimates.

Ahead in the week, the ECB meeting is due tomorrow and it will be more than interesting to hear the Council’s view in response to the recent sharp appreciation of the exchange rate.

EUR/USD levels to watch

At the moment, the pair is up 0.71% at 1.2385 facing the next hurdle at 1.2402 (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).