EURUSD – extended recovery pressures 1.24 Fibo barrier; EU and US data expected to provide stronger signals

The Euro remains firm and extends recovery rally near 1.2400 barrier (Fibo 61.8% of 1.2522/1.2205 bear-leg) on Wednesday, following Tuesday’s close above 20SMA which was fresh bullish signal.
Bounce from 1.2205 correction low (09 Feb) extends for the third straight day, improving picture on daily chart as techs are returning into full bullish setup.
Converged 10/20SMA’s (1.2345) mark initial support and underpin for further recovery extension.
Close above 1.24 Fibo barrier will be bullish signal for renewed attacks at 1.25 zone, while close below 10/20SMA’s would soften near-term tone and delay bulls.
EU GDP and IP data are key releases from the Eurozone today, while US inflation data are in focus in the American session.
Bloc economy’s growth is expected to stay at unchanged pace in Q4 according to the forecasts (Q4 GDP m/m 0.6% f/c vs 0.6% in Q3 and GDP q/q 2.7% f/c vs 2.7% in Q3).
On the other side, industrial production in EU is expected to increase by 0.1% in December, well below previous month’s 1.0% release.
US CPI is expected to be a key driver today. Lower than expected US inflation numbers would deflate dollar and push the single currency above 1.2400.

Res: 1.2400; 1.2447; 1.2500; 1.2522
Sup: 1.2345; 1.2326; 1.2284; 1.2259