US producer prices for the month of Jan came at 0.4% in line with expectations. The main reason for decline in dollar was policy divergence between US fed and other have been eroded. Market awaits US housing starts and building permits data to be released today for further direction.
The pair is facing near term resistance of 1.25600 and break above will take the pair till 1.26125 (61.8% fibo)/1.2650/1.2700. continuation can be seen above 1.2540.
On the lower side, near term support is around 1.24600 (23.6% fibo) and any violation below will drag the pair to next level till 1.2430/1.2380/1.2300. Minor weakness can be seen only below 1.2200.
It is good to buy on dips around 1.2525-30 with SL around 1.24800 for the TP of 1.26125/1.2635.