The single currency has gathered further downside momentum on Monday, motivating EUR/USD to record fresh daily lows in the 1.2365/60 band. The pair kept the selling bias unaltered at the beginning of the week after US inflation figures measured by the core PCE showed consumer prices rose at an annualized 1.5% and 0.2% inter-month in December, matching initial estimates. Further results from the US docket showed US consumer spending expanding below expectations 0.4% MoM during the same period, while consumer income rose at a monthly 0.4% (vs. 0.3% expected). The greenback’s bid tone remains unabated so far today, forcing spot to give away part of the recent strong gains, while expectations of a rate hike by the Federal Reserve at the March meeting are closer to 80%, according to CME’s Group FedWatch tool. At the moment, the pair is losing 0.46% at 1.2370 facing the next support at 1.2359 (low Jan.29) followed by 1.2310 (10-day sma) and finally 1.2172 (21-day sma). On the flip side, a breakout of 1.2537 (2018 high Jan.25) would target 1.2571 (high Dec.16 2014) en route to 1.2600 (psychological level).