EUR/USD adds to Monday’s gains and extends the breakout of the key 1.2200 the figure on turnaround Tuesday. EUR/USD trades in new 4-day highs near the 1.2240 region and extends the optimism seen at the beginning of the week. The offered bias in the greenback continues to prop up the move higher in the pair, which stays also reinforced by the 2-month support line, today around the 1.2200 neighbourhood. Also sustaining the upbeat mood in the risk complex, yields of the German 10-year Bund tick higher along with their US peers.

EUR/USD manages to regain the 1.2200 mark after dropign as low as the 1.2130 region at the end of last week. The better mood in the euro remains largely underpinned by the improved sentiment in the risk appetite and the perseverant bearish stance in the greenback, all amidst rising optimism on the recovery in the euro area, which appears in turn supported by the firmer pace of the vaccine rollout. So far, spot is gaining 0.12% at 1.2237 and faces the next hurdle at 1.2266 (monthly high May 25) followed by 1.2300 (round level) and finally 1.2349 (2021 high Jan.6). On the flip side, a break below 1.2132 (low May 28) would target 1.2051 (weekly low May 13) en route to 1.1985 (monthly low May 5).