EUR/USD probes key hurdle as risk assets remain bid

• EUR/USD rises as risk-on weighs over the US dollar. 
• Stocks cheer coronavirus vaccine optimism, commodities rally.
• The pair's rally may lose steam if the German data disappoints expectations. 

EUR/USD challenges key hurdle and could soon chart a breakout, as risk remains bid on coronavirus vaccine optimism. 

The pair found buyers below 1.2130 in Asia and tested the crucial resistance at 1.2149 soon before press time. That level proved a tough nut to crack on Feb. 11. 

The anti-risk dollar is under pressure, with the Asian stocks and the futures tied to the S&P 500 cheering the UK's vaccine rollout success and Monday's rally in FTSE 100, UK's benchmark equity index. The buoyant risk sentiment could also be attributed to the rally in oil and industrial metals such as copper. 

A continued risk-on during the European trading hours could end up pushing EUR/USD well above 1.2149. However, the sustainability of the gains depends on Eurozone and German data scheduled for release later today. 

Eurozone's preliminary Gross Domestic Product (GDP) reading for Q4 2020 is expected to show the economy contracted by 0.7 quarter-on-quarter and 5.1% year-on-year in the final three months of 2020. 

A big miss on expectations could draw offers for the single currency. More substantial selling pressure may hit the market if the forward-looking German Zew Survey indices for the Current Situation and Economic Sentiment paint a gloomy picture of the Eurozone's largest economy. 

A continued rise in the US Treasury yields may weigh over the equity markets and boost demand for dollars, putting brakes on EUR/USD's rally. 

Technical levels