EUR/USD approaches 1.2400 on USD-selling

• The pair is gathering traction and testing highs around 1.2400.
• The greenback plummets to the 89.70 area tracked by the DXY.
• US Factory Orders, FOMC’s L.Brainard next on tap across the pond.

The demand for the shared currency is now picking up extra pace and motivating EUR/USD to clinch fresh daily highs in the 1.2400 neighbourhood.

EUR/USD stronger as USD drops

Spot leapt to fresh tops in the 1.2400 area following an increasing and renewed selling bias around the greenback, all in response to alleviated concerns over a potential trade war.

By the same token, the recent approach between North and South Korea is also easing geopolitical woes and collaborating with the upbeat sentiment in the risk-associated universe.

On the USD-side, the US Dollar Index accelerated the correction lower after it broke below the psychological 90.00 mark, dropping to lows in the 89.70/65 band.

Later in the session, US Factory Orders are the sole publication across the pond, seconded by the speech by FOMC’s dovish and permanent voter Lael Brainard.

EUR/USD levels to watch

At the moment, the pair is gaining 0.39% at 1.2397 and a break above 1.2415 (short-term resistance line) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.18). On the downside, immediate contention emerges at 1.2297 (10-day sma) followed by 1.2272 (low Mar.1) and finally 1.2206 (low Feb.9).