EUR/USD tests 1.2460 on EMU’s CPI

• EMU’s CPI seen at 1.3% YoY in January.
• Spot clinched fresh tops at 1.2460.
• US ADP, FOMC next on tap.

The upbeat mood around the shared currency stays well and sound on Wednesday, with EUR/USD navigating the upper end of the recent range in the proximity of 1.2460.

EUR/USD bid on data, focused on US docket

The pair has gained extra legs after advanced inflation figures in the euro area showed consumer prices are expected to rise at an annualized 1.3% during January. In addition, prices stripping food and energy costs are seen at 1.0% during the same period, both prints falling in line with prior surveys.

Further data in the euro bloc saw the unemployment rate staying put at 8.7% in December, matching estimates.

The upside in spot, in the meantime, remains sustained by the weaker stance around the greenback, which has forced the US Dollar Index (DXY) to recede to the 89.00 neighbourhood, quickly fading the uptick seen at the beginning of the week.

Later in the session, USD is expected to remain in centre stage in light of the release of US ADP report (186K exp.) and the FOMC meeting, where consensus sees the Committee leaning towards a hawkish message.

EUR/USD levels to watch

At the moment, the pair is gaining 0.32% at 1.2443 and a breakout of 1.2495 (high Jan.26) would target 1.2537 (2018 high Jan.25) en route to 1.2571 (high Dec.16 2014). On the flip side, the next support aligns at 1.2348 (10-day sma) followed by 1.2336 (low Jan.30) and finally 1.2208 (21-day sma).