The euro managed to recoup its losses from early Monday trading, rebounding off its lowest level in 4-years beneath the 1.23-level as the European and US equity bourses stabilized. Crude oil also recouped above the $70-per barrel mark. US equities closed the session flat with the Dow Jones down by over 2% around noon to finish nearly unchanged.

The US economic reports released earlier today included the NY Fed manufacturing index, the March net long-term TIC flows and the May NAHB housing market index. The NY Fed manufacturing index fell by more than expected to 19.11 versus forecasts for a 30-reading from 31.86 in April. The March net long-term TIC flows were sharply higher at $140.5 billion, compared with a $47.1 billion print in the prior month.

Traders will look ahead to Tuesday's reports, consisting of the April producer price index, housing starts and building permits. Consensus estimates are calling for housing starts to improve to 650k units in April from 626k units from March and for building permits to remain unchanged at 680k units. The headline producer price index is forecast to creep up by 0.1% on a monthly basis versus 0.7% and higher by 5.6% on an annualized basis compared with 6.0% previously. The core PPI figures are seen unchanged at 0.1% m/m and 0.9% y/y.

EURUSD managed to claw its way back after hitting a fresh 4-year low at 1.2232 to climb back toward the 1.24-region. Uncertainties over the Eurozone sovereign-debt crisis continues to weigh on the single currency, triggering heightened bouts of risk aversion and increased volatility. Traders have largely shrugged off recent Eurozone economic reports. Nonetheless, in the session ahead several key releases are scheduled, including the Eurozone HICP, core inflation and Germany's ZEW sentiment survey.

The euro will find support at 1.23, followed by 1.2260 and 1.2230. Additional floors will emerge at 1.22, backed by 1.2170 and 1.2140. On the topside, resistance is seen at 1.2370, followed by 1.24 and 1.2450. Subsequent ceilings are eyed at 1.2480, backed by 1.25 and 1.2550.