EUR/USD pushes higher, 1.2450 on the cards

• The sell off remains intact around the buck, fuelling the pair’s upside.
• Spot moved above the ley 1.2415 ZONE and now targets the mid-1.2400s.
• Fedspeak next on tap in the US docket. Risk-on sentiment stays unchanged.

The demand for the single currency is now picking up extra pace and takes EUR/USD to the 1.2430/40 band, at shouting distance from the key resistance area near 1.2450

EUR/USD up on risk on sentiment

The pair’s up move remains sustained by the continuation of the upbeat mood in the risk-associated space, which in turn has motivated a strong drop in the greenback to the vicinity of the 89.00 handle when tracked by the US Dollar Index (DXY).

Apart from the positive sentiment in the risk appetite trends, EUR met extra buying pressure after BuBa’s J.Weidman did not rule out a rate hike at some point in mid-2019. He deemed those expectations as ‘not completely unrealistic’.

On the USD-side, DXY is now prolonging the earlier breakdown of the key support area around 89.40 and challenges the 89.00 neighbourhood, all amidst usual political uncertainty around the White House, month/quarter-end flows and recent news citing President Trump expelled 60 Russian diplomats from  the US.

Later in the NA session, NY Fed W.Dudley (permanent voter, centrist) and Cleveland Fed L.Mester (voter, hawkish) are due to speak.

EUR/USD levels to watch

At the moment, the pair is gaining 0.72% at 1.2441 and a break above 1.2448 (high Mar.8) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.16). On the flip side, immediate contention emerges at 1.2241 (low Mar.21) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18).