The euro has moved back towards the 1.2200 technical level against the U.S dollar, quickly erasing Wednesday’s gains, after the pair surged earlier towards the 1.2290 level. The EURUSD pair lost ground overnight, as the U.S dollar index staged a broad-based recovery and German political uncertainty weighed on the single currency. Going forward, technical traders will be focused on the 1.2200 region and Wednesday bearish daily reversal candle, which created a lower daily price-high, providing some caution for euro buyers.
The EURUSD pair remains intraday bullish while price-action holds above the 1.2200 level, further upside towards 1.2258 and 1.2290 remains possible.
If the EURUSD pair falls below the 1.2200 level for a sustained period, further losses towards the 1.2156 and 1.2093 levels seems likely.