EUR/USD surges through 1.24 mark, near session tops ahead of German CPI

   •  USD selling reemerges on retracing bond yields.
   •  German CPI to influence shared currency.

The EUR/USD pair rebounded around 90-pips from a 4-day low level of 1.2335 and was now seen building on its momentum beyond the 1.2400 handle. 

A fresh wave of US Dollar selling pressure was seen as one of the key factors behind the pair's upsurge since the early European session. A sharp retracement in the US Treasury bond yields revived the prior well established bearish USD trend ahead of the US President Donald Trump's first official State of the Union address. 

Meanwhile, today's mostly in-line prelim EZ GDP figures, coming in to show 0.6% q-o-q growth for the third straight quarter, remained supportive of the strong bid tone surrounding the shared currency. 

Traders now look forward to the release of flash German CPI print and Conference Board's US Consumer Confidence Index for some fresh impetus. The key focus, however, would be on the FOMC meeting, which would drive the buck in the near-term and eventually determine the pair's next leg of directional move.

Technical levels to watch

Immediate resistance is pegged near the 1.2430-35 region, above which the pair is likely to make a fresh attempt towards conquering the key 1.2500 psychological mark.

On the flip side, the 1.2385-80 region now seems to protect the immediate downside, which if broken might now turn the pair vulnerable to aim towards testing its next support near the 1.2300 handle.