EUR/USD climbs back to 1.2400

• EUR/USD recovers from lows but 1.2400 caps the bounce
• The dollar retreats across the board; US stock indexes turn positive

EUR/USD has moved away from daily lows and climbed back to the 1.2400 area as the dollar’s rally takes a breather.

The pair hit a low of 1.2313 earlier on the day and from there rose over 80 pips to a session high of 1.2403 as stocks turned green in Wall Street. At time of writing, EUR/USD is trading at the 1.2390 area, 0.2% above its opening price.

On the data front, there were only second-tier releases on Tuesday. December’s US trade deficit widened more than initially forecasted to $53.1 billion, while the IBD/TIPP index came in at 56.7 (vs 55.4 expected) and JOLTs jobs openings dropped to 5.811 million in December (from 5.978 million).

EUR/USD levels to consider

As for technical levels, next  resistances are seen at 1.2434 (intraday high), 1.2474 (Feb 5 high), 1.2522 (Feb 1 high) and 1.2537 (3-year high, Jan 25). On the other hand, supports could be found at 1.2313  (intraday low), 1.2290 (Jan 24 low) and 1.2264 (Jan 18 low).