EUR/USD testing highs near 1.2270

• Spot moves higher to 1.2270.
• USD on the defensive following US Senate vote.
• US yields failed near 2.88%, back around 2.83%.

The shared currency is posting small gains vs. the greenback at the end of the week, taking EUR/USD to the 1.2270 region amidst thin trade.

EUR/USD looks to US politics

The pair is trading within a sidelined theme on Friday and remains vigilant on the headlines coming from the US political area, where a government shutdown appears finally averted.

In fact, the way seems paved for another Senate vote for a bill that would fund the government through March 23 and increase the spending limits over the next two years.

Nothing scheduled data-wise in the euro area today and in the US docket, leaving the bulk of the attention to the broad risk appetite trends and to the above mentioned US politics.

EUR/USD levels to watch

At the moment, the pair is up 0.16% at 1.2266 and a breakout of 1.2327 (21-day sma) would target 1.2372 (10-day sma) en route to 1.2524 (high Feb.1). On the flip side, the immediate support emerges at 1.2212 (low Feb.8) seconded by 1.2167 (50% Fibo of the 2014-2017 drop) and finally 1.2165 (low Jan.18).