The euro currency has weakened further against the U.S dollar in early Tuesday trading, falling back towards the 1.2350 level, as U.S 10-year Treasury-yields rally towards multi-year highs. Rising long-term bond yields in the United States has encouraged buying in the U.S dollar index, putting selling pressure back on the EURUSD pair. During the upcoming European session, traders will look to the release of fourth quarter GDP figures from the eurozone trading block, and headline January CPI inflation from the German economy.
EURUSD losses are likely to extend while price-action trades below the 1.2385 level. Downside targets for intraday sellers remain 1.2323 and 1.2280.
Should the EURUSD start to trade above the 1.2385 level, buyers may test towards the pairs 100-month moving average, at 1.2432.
