The euro had a very strong session on Tuesday to break above the 1.22 handle, and looks very likely to go looking towards the 1.23 level given enough time.
The positive US inflation numbers were offset by the announcement of a sharp decline in US retail sales.
The market does seem like it will probably run into a little bit of trouble, but at the end of the day it certainly looks as if the euro is strengthening overall.
The Euro has rallied significantly on Friday as the retail sales number in the United States came out much lower than anticipated.
The Euro initially tried to rally during the trading session on Thursday but gave back the gains rather early and then continue to drop.
After the dust caused by the US job numbers settled, the US dollar reacted positively to the announcement of the US CPI reading.
The euro broke down significantly during the trading session on Wednesday as the 1.22 level has continued to show a lot of resistance.
The recent gains of the EUR/USD pair came to a halt at the 1.2180 resistance level, a two-and-a-half-month high.
The Euro initially shot higher during the course of the trading session on Tuesday but found the 1.22 level as resistive.
At the beginning of this week's trading, the EUR/USD pair continued its correction to the upside, with gains that reached the 1.2178 resistance level.
The euro was very quiet during the trading session on Monday as traders came back to work and sold off the US dollar against most other things, but the euro lagged.
In a sudden development at the end of last week's trading, the EUR/USD moved strongly to the resistance level of 1.2172 where it closed the week’s trading.
The euro rallied significantly during the trading session on Friday, breaking above the 1.2150 handle.
The Euro rallied significantly during the course of the trading session on Thursday as the 1.20 handle has offered enough support to keep the market going.
Since the start of trading on Thursday, the EUR/USD is trying to correct upwards after four bearish trading sessions that pushed the pair to the 1.1986 support level, settling around 1.2045 as of this writing.