EUR/USD challenges lows near 1.2230 post-US data

• The pair faded the spike to 1.2290 and receded to 1.2235/30 band.
• DXY clinches fresh daily tops beyond 90.30.
• US trade deficit widened to $57.60 on February.

EUR/USD stays depressed around the area of session lows near 1.2250 on Thursday in the wake of US data and positive comments regarding US-China trade issues.

EUR/USD testing lows near 1.2250

The pair came under further pressure following auspicious comments by President Trump’s Advisor L.Kudlow, who said that US and China could clinch a deal ‘over a period of time’. Kudlow also suggested that a second phase of the tax plan is unlikely to be in the near term.

Those comments gave extra wings to the buck, which pushed the US Dollar Index further north of the 90.30 area, recording fresh daily highs at the same time.

In today’s US docket, February’s trade deficit was the largest since the financial crisis at $57.6 billion, while Initial Claims rose at a weekly 242K, missing consensus.

EUR/USD levels to watch

At the moment, the pair is losing 0.22% at 1.2250 facing immediate contention at 1.2236 (low Apr.3) followed by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the upside, a break above 1.2327 (10-day sma) would target 1.2478 (high Mar.27) en route to 1.2537 (high Jan.25).