EURUSD stands at the back foot ahead of EU data

The Euro remains in red on Tuesday and probes again through cracked daily Tenkan-sen (1.2351), looking for retest of Monday’s spike low at 1.2336 and attack at rising 10SMA at 1.2316.
Studies on lower timeframes are in negative setup and point to the downside. Also, daily RSI reversed from overbought zone and supports scenario.
Violation of stops below 1.2300 would trigger fresh weakness, but extended dips should hold above rising 20SMA (1.2193) to keep overall bulls intact for renewed attempts through 1.25 barrier.
Release of EU Q4 GDP and German inflation data are key events for the Euro today.
The bloc’s economic growth remains steady and is expected rise by 2.7% Y/Y in the fourth quarter from 2.6% in Q3.
Solid GDP data today (at/above forecast) would inflate the Euro and reduce current downside risk.
On the other side, inflation in Germany is expected to dip in January (-0.5% f/c vs 0.6% previous month).
The performance of US dollar is closely watched as the greenback holds in near-term recovery mode off fresh three-year lows and after being shaken by conflicting comments from top US officials last week in economic forum in Davos.
President Trump’s State of the Union speech due in early hours on Wednesday and the outcome of Fed two day policy meeting will be closely watched for fresh signals.

Res: 1.2388; 1.2432; 1.2493; 1.2537
Sup: 1.2316; 1.2300; 1.2253; 1.2193