EUR/USD solid near 1.2460 ahead of US ISM

• EUR is the best performer today.
• USD testing lows near 88.80.
• US ISM manufacturing next on tap.

There seems to be no respite for the USD’s decline. As a consequence, EUR/USD keeps pushing higher today and is already flirting with the area of daily highs around 1.2460.

EUR/USD attention to US ISM

The upbeat sentiment around the shared currency stays well and sound in the second half of the week, lifting EUR/USD to fresh peaks in the 1.2460 region and always helped by the offered bias in the buck.

In fact, the greenback has accelerated the downside and is now testing fresh lows when tracked by the US Dollar Index (DXY) amidst some correction lower in yields of the key US 10-year reference.

On the data front, final manufacturing PMIs came in mixed in the euro area in January, while the US docket showed initial claims at 230K WoW, taking the 4-week average to 234.50K from 239.50K. Later in the session, the always-relevant US ISM manufacturing is expected to come in at 58.8 during last month, a tad lower than the December’s reading.

EUR/USD levels to watch

At the moment, the pair is advancing 0.34% at 1.2457 and a breakout of 1.2475 (high Jan.31/Feb.1) would target 1.2537 (2018 high Jan.25) en route to 1.2571 (high Dec.16 2014). On the downside, the immediate support is located at 1.2361 (10-day sma) followed by 1.2336 (low Jan.30) and finally 1.2225 (21-day sma).