EUR/USD looks to regain 1.2200 ahead of data, Powell

• Broad-based USD-strength dragged spot below the 1.2200 handle.
• Initial support for the pair emerges at the 55-day sma at 1.2182.
• Final manufacturing PMIs in Euroland next of relevance in the region.

The continuation of the rally in the greenback has dragged EUR/USD below the key support at 1.2200 the figure, where it is now looking to stabilize.

EUR/USD looks to data, Powell

The pair managed to break below the critical support at 1.2200 (February low) on Wednesday, as the march north in the buck remains unabated so far.

In fact, tracked by the US Dollar Index (DXY), the buck is trading closer to the critical 91.00 milestone (high January 18), always bolstered by an apparent shift in sentiment towards the buck, healthy data, prospects of extra tightening by the Fed and the hawkish message from Chief Powell at his Humphrey-Hawkins testimony on Tuesday.

Later in the session, final manufacturing PMIs in the euro area and the unemployment rate are unlikely to move the market, while all the attention should be on the US docket: PCE, Personal Income/Spending, ISM manufacturing and Powell’s testimony before the Senate Banking Committee.

In addition, New York Fed and permanent voter W.Dudley (centrist) is also due to speak later in the NA session.

EUR/USD levels to watch

At the moment, the pair is up 0.09% at 1.2203 and faces the initial hurdle at 1.2301 (10-day sma) seconded by 1.2337 (21-day sma) and then 1.2356 (high Feb.26). On the other hand, a breach of 1.2184 (low Mar.1) would target 1.2167 (50% Fibo of 2014-2017 drop) en route to 1.2165 (low Jan.18).