Despite the USD’s impetus stalled quickly, the latest market behavior shows some signs of selling fatigue. Moreover, the currency is deeply oversold, and the aggressive sell off that continued this month in fact doesn't look to be reinforced by meaningful fundamentals. Therefore, in the nearest future, fresh recovery signals should be expected.
In the EURUSD , pair this implies the increasing downside risks, especially after the recent verbal interventions from the ECB officials that expressed concern over euro strength which poses a threat to the euro area growth.
The pair recovered above 1.22 and focused on the next psychological hurdle again, which may be tougher to overcome this time. In the longer term, however, there is so far no threat to the major EURUSD . The immediate significant support is now at 1.2180.