EU/USD hits fresh 3-year high of 1.2335

• USD sell-off continues.
• EUR/USD rises to fresh 3-year high.
• Eyes Eurozone PMI release.

The relentless USD selling has pushed the EUR/USD pair to a fresh three-year high of 1.2335 ahead of the preliminary PMI release across the Eurozone.

As of writing, the currency pair is trading at 1.2323. The move higher in Asia seems to have been triggered by Yen's rise against the USD. The USD/JPY pair dipped below 110.00 in Asia, triggering stops on USD longs and leading to a broad-based USD sell-off.

That said, the EUR could catch a bid in Europe if the preliminary Eurozone and German PMIs beat estimates and reveal rising price pressures.

EUR/USD Technical Levels

A major resistance is seen at 1.2376 (161.8% Fib extension of the Nov low - Nov high - Dec low). A close above would expose 1.2431 (monthly 200-MA) and 1.2517 (38.2 of 1.6040/1.0340). On the other hand, a failure to hold above 1.22 (zero levels) would open doors for a pullback to 1.2223 (previous day's low) and 1.22 (zero levels).