EUR/USD probing daily lows near 1.2350

• Spot loses the grip to the mid-1.2300s.
• Higher US yields keep USD bid.
• EU, German data next on tap.

The single currency keeps losing ground on Tuesday and is now forcing EUR/USD to test the lower end of the daily range in the 1.2360/50 band.

EUR/USD focused on EU, German releases

Spot is down for the second session in a row during the first half of the week, shedding nearly 2 cents since last week’s multi-year tops in the proximity of 1.2540 (Thursday 25).

Higher yields in the US money markets could be behind the renewed selling bias around the pair, as market participants expect the FOMC meeting on Wednesday to be tilted to the hawkish side.

In the data space, advanced EMU Q4 GDP figures are due later in the morning along with several sentiment/confidence gauges, all preceding January’s preliminary inflation figures in Germany. Across the pond, the S&P/Case-Shiller index is due seconded by the consumer confidence tracked by the Conference Board.

EUR/USD levels to watch

At the moment, the pair is losing 0.23% at 1.2353 facing the next support at 1.2337 (low Jan.29) followed by 1.2317 (10-day sma) and finally 1.2187 (21-day sma). On the flip side, a breakout of 1.2537 (2018 high Jan.25) would target 1.2571 (high Dec.16 2014) en route to 1.2600 (psychological level).