EUR/USD challenges session lows near 1.2270

• The pair remains under pressure within a tight range.
• USD slightly bid against the backdrop of rising US yields.
• Final Services PMIs in Euroland, US trade balance next on tap.

The demand for the single currency stays subdued so far this week, motivating EUR/USD to meander the lower en of the range in the 1.2275/70 band ahead of the opening bell in Euroland.

EUR/USD looks to data, risk trends

Alternating risk appetite trends, a better tone around the buck and US-China trade war tensions continue to dominate the sentiment among traders.

The pair, consequently, has embarked in an erratic performance and it has broken below the key short-term support/resistance line off YTD lows, where it now seems to look for some consolidation.

The down move in the pair has been accompanied by a moderate rebound in yields of the key US 10-year reference, which managed to retake the 2.81% handle and above.

In the data space, final Services PMIs in the euro area for the month of February are unlikely to spark any noticeable move in EUR. In addition, Retail Sales in the region are also due for release.

Across the pond, February’s Trade Balance figures will be the salient event along with Initial Claims and the speech by Atlanta Fed R.Bostic (voter, centrist).

EUR/USD levels to watch

At the moment, the pair is retreating 0.02% at 1.2276, facing immediate contention emerges at 1.2253 (low Apr.3) followed by 1.2241 (low Mar.21) and finally 1.2206 (low Feb.9). On the upside, a break above 1.2327 (10-day sma) would target 1.2478 (high Mar.27) en route to 1.2537 (high Jan.25).