EUR/USD challenges 1.2300

FXStreet (Córdoba) - EUR/USD extended its recovery from fresh cycle lows to the 1.2300 area during the American session as investors took profit of USD long positions after Friday's impressive rally.

EUR/USD hit its lowest level since Aug 2012 at 1.2247 after comments from ECB Nowotny saying QE could be valuable in addressing the massive weakening of the Eurozone economy. However, euro managed to reverse early losses over the last hours and climbed to 1.2300 before finding resistance. At time of writing, the pair is trading at 1.2290, virtually unchanged since opening.

EUR/USD levels to watch

As for technical levels, immediate resistances are seen at 1.2300/03 (psychological level/daily high), 1.2392/1.2400 (Dec 5 high/10-day SMA). On the flip side, supports could be found 1.2247 (2014 low Dec 8), 1.2200 (psychological level) and 1.2167 (Aug 3 2012 low).

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