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EURUSD: breakout resistance level could lead to 1.2190

EURUSD showed pronounced intraday volatility on Friday, February 12 as the pair closed with a moderate decline. The price action started near 1.2130. After a short rise to 1.2135, the pair moved lower, and fell to 1.2080 by the beginning of the North American session. However, the pair quickly recovered from this level and ended the week near 1.2120.

The reason for gains during the North American session was weak macro data stateside. According to preliminary data, the February University of Michigan consumer confidence index fell to 76.2 compared to 79.0 in January, although the median forecast expected it to reach 80.8. This index is based on a survey of consumers about their level confidence in the US economy. The index is an indicator of consumer confidence in economic growth, i.e. assessing their willingness to spend money.

The single currency continued to trend higher on Monday morning, reaching 1.2145 before noon, after which it corrected to 1.2140. If the 1.2150 resistance level is breached, the pair can be expected to trade upward to 1.2190. However, today is President's Day in the US, so high volatility should not likely be expected during the North American session. Eurozone industrial output for December is due out at 12:00 GMT. The median forecast is calling for a 0.6% MoM decline following a 2.5% MoM increase in November.

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