Fxstreet.com (Barcelona) - The euro consolidated its recent gains against the US dollar on Tuesday, holding in a tight range of roughly 1.2950 - 1.3025.

Resistance from the 100 SMA looms above at 1.3058, suggesting a further correction lower may be possible, but ultimately EUR/USD seems likely to continue gaining in light of the bearish turn lower in the DXY index.

Overall, the data reflects the weak status of the Euro-zone's largest economy, but also indicates that investors hold some hope that the European Central Bank's policy efforts will help to encourage both economic and financial market recovery, said Terri Belkas, an analyst at FXCM.