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EUR/USD’s upside picks up pace near the 1.2200 mark The single currency now regains the smile and lifts EUR/USD to the vicinity of the 1.2200 mark on Wednesday. EUR/USD leaves behind Tuesday’s pullback and resumes the upside with the next target at 1.2200 the figure on the back of the renewed selling bias surrounding the greenback. Meanwhile, the vaccination campaign keeps its firm pace unabated in the Old Continent amidst rising optimism on a strong economic recovery and despite new bouts of coronavirus cases in some countries. Earlier in the euro docket, the German trade surplus expanded to €15.9 billion in April (from €14.3 billion) and the Current Account surplus shrank to €21.3 billion during the same period (from €30.0 billion).

Last week’s sell-off in EUR/USD met solid support around the 1.2100 neighborhood. The subsequent bounce managed to re-test the key 1.2200 level, leaving the perspective on the positive side at least in the very near-term. Looking at the broader scenario, the constructive perspective in the European currency stays in place and appears propped up by auspicious results from fundamentals in the bloc coupled with higher morale, prospects of a strong rebound in the economic activity in the Old Continent in the months to come and the investors’ appetite for riskier assets. So far, spot is gaining 0.11% at 1.2186 and faces the next up barrier 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 1.2063 (23.6% Fibo retracement of the November-January rally) would target 1.2051 (weekly low May 13) en route to 1.1985 (monthly low May 5).