USD is starting to slip ahead of inflation data today, while the EUR/USD hits highest levels since December 2014

The dollar is looking fragile across the major bloc as most currencies are pulling ahead on the day - as commodity currencies are also starting to pare gains against the USD.

Meanwhile, the EUR bull is finding renewed momentum as it breaks above the 1.2100 for the first time in over three years. The ECB December minutes released yesterday, German coalition talks reaching a preliminary agreement today, and US dollar weakness were enough reasons for buyers to break above the 2017 high and above 1.2100.

This opens up another run to the upside as the EUR/USD looks to halve losses sustained when it fell from 1.4000 to below 1.0500 from 2014 to 2016.

Depending on how you draw the Fib retracement on the daily chat (in cases like this, it can be subjective as these are relatively long time-frames), there's resistance either at the 1.2167 level or the 1.2228 level - but both coincide with the 50.0 retracement level.

To be safe, I'd look for the closer level first at 1.2167 and if there are sellers lurking there - then we'd get confirmation as to what levels we should be looking at.