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EUR/USD moves higher, closer to 1.2400

The pair extends the daily upside to the proximity of 1.2400.
USD-weakness takes DXY to re-test lows in the 89.40 area.
US Retail Sales expanded more than expected in March.

The greenback has intensified the downbeat momentum at the beginning of the week and has helped EUR/USD to clinch fresh tops in levels just shy of the key barrier at 1.2400 the figure.

EUR/USD up on USD-selling

The pair staged a moderate rebound and re-visited the area near the 1.2400 handle today in response to a significant pullback in the greenback, which dropped and tested once again last week’s lows in the 89.40 zone.

Low volatility (as per the VIX performance) and sellers returning to the buck motivated spot to extend the optimism at the beginning of the week, although it seems a tough barrier emerged in the 1.2400 neighbourhood for the time being.

In the US data space, better-than-expected results from March’s Retail Sales failed to ignite any meaningful reaction in the greenback so far. On the opposite side, the Empire State manufacturing gauge and the NAHB index both came in below initial estimates.

EUR/USD levels to watch

At the moment, the pair is gaining 0.44% at 1.2384 facing the immediate resistance at 1.2397 (high Apr.11) followed by 1.2478 (high Mar.27) and then 1.2538 (high Jan.25). On the downside, a breakdown of 1.2300 (low Apr.12) would target 1.2214 (low Apr.6) en route to 1.2153 (low Mar.1).