EUR/USD rangebound around 1.2380

• EUR sidelined below 1.2400.
• USD down smalls near 89.60.
• US 10-year down to 2.77%.

The single currency is navigating within a consolidative theme on Wednesday, prompting EUR/USD to meander around 1.2380 as European desks are getting ready for the day.

EUR/USD attention to risk trends

After dropping to the vicinity of 1.2300 the figure during the first half of the week, the pair seems to have found some decent support and is now looking to regain the upper-1.2300s.

The effervescence that accompanied the global markets on Monday and part of yesterdays’ session appears somewhat mitigated early today following a recovery session in Wall Street, while the VIX index retreated off recent highs around 50.0 and crypto-currencies received some fresh oxygen.

In the data space, German industrial production contracted 0.6% MoM in December while the European Commission will publish its forecasts. Across the pond, New York Fed W.Dudley (permanent voter, centrist) and Chicago Fed C.Evans (2019 voter, centrist).

EUR/USD levels to watch

At the moment, the pair is up 0.12% at 1.2391 and a breakout of 1.2413 (10-day sma) would target 1.2522 (high Feb.2) en route to 1.2537 (2018 high Jan.25). On the other hand, the immediate support lines up at 1.2315 (low Feb.6) followed by 1.2307 (21-day sma) and finally 1.2167 (50% Fibo of the 2014-2017 drop).