EUR/USD firmer, targets 1.2300

• Spot stays strong near 1.2300.
• USD on the defensive.
• Risk-on sentiment supports EUR.

The shared currency has started the week on a firm footing and is now lifting EUR/USD to climb to the area of daily tops at shouting distance from 1.2300 the figure.

EUR/USD finds support on risk sentiment

The return to the better mood around riskier assets is weighing on the buck and helping the pair to regain the boundaries of 1.2300 the figure, reverting a 3-session negative streak.

Empty dockets in both Euroland and the US economy should leave the bulk of the attention to the broader risk appetite trends while markets shift their focus to the upcoming US inflation figures tracked by the CPI and retail sales, both due on Wednesday.

In the meantime, spot seems to have found decent support in last week’s lows around the 1.2200 neighbourhood, when it was under pressure against the backdrop of a stronger greenback and heightened volatility.

EUR/USD levels to watch

At the moment, the pair is up 0.19% at 1.2273 and a breakout of 1.2329 (21-day sma) would target 1.2356 (10-day sma) en route to 1.2524 (high Feb.1). On the flip side, the immediate support emerges at 1.2206 (low Feb.9) seconded by 1.2167 (50% Fibo of the 2014-2017 drop) and finally 1.2165 (low Jan.18).