EUR/USD to turn bullish on a break above 1.2170

The EUR/USD pair recovered on a better market’s mood, hitting a daily high of 1.2137 and trading nearby ahead of Wall Street’s opening. Bulls will have better chances above the 1.2170 mark, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“There are no fireworks across financial markets, as investors await for Janet Yellen. The former Federal Reserve’s head has been nominated as Treasury Secretary by Joe Biden and will speak before the Senate Finance Committee.”

“Data coming from Europe was generally encouraging, although still reflecting the effects of the pandemic in economic progress. German inflation was confirmed at -0.3% YoY in December, while the ZEW Survey showed that the Economic Sentiment improved to 61.8 in January from 55 in the previous month. The index for the EU came in at 58.3, improving from 54.4.”

“The EUR/USD pair has recovered from around the 38.2% retracement of its November/January rally at 1.2062 but remains below the next Fibonacci level at 1.2170. Bulls will likely retake control on a break above this last.”