After climbing as high as the 1.2240 region, EUR/USD now faces some corrective downside to the 1.2210/15 band. The upside momentum in EUR/USD subsides somewhat after sellers turned up in the area of recent tops near 1.2240. In fact, the greenback now shows some signs of life and motivates EUR/USD to recede from earlier 7-week tops, although the bid bias stays largely unchanged ahead of the opening bell in Wall St. on Thursday.
EUR/USD finally surpasses the 1.2200 barrier, clinching new monthly peaks at the same time. The bullish sentiment in the euro now looks improved and could be supportive of extra strength in the short-term horizon. This, in turn, remains supported by the prospects of extra fiscal stimulus in the US, real interest rates favouring Europe vs. the US and hopes of a solid economic rebound in the next months.