EUR/USD jumps to weekly highs, around mid-1.1900s

The EUR/USD pair continued gaining some positive traction for the third consecutive session and jumped to 3-day highs, around mid-1.1900s in the past hour.

A fresh wave of greenback selling pressure during early European session, with the key US Dollar Index inching closer to the 92.00 handle has been one of the key factors behind the pair's uptick over the past hour or so.

With investors looking past Tuesday's dovish comments from various Fed officials, a modest pickup in the US Treasury bond yields did little to lend any support to the greenback and stall the pair's up-move. 

Traders even shrugged off an unexpected drop in German factory orders for July, with renewed USD selling bias turning out to be an exclusive driver of the pair's bullish momentum on Wednesday.

It, however, remains to be seen if the pair is able to build on the up-move or once again runs through some fresh offers at higher levels amid repositioning trade ahead of Thursday's ECB monetary policy decision.

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Today's US economic docket features the release of trade balance data and ISM non-manufacturing PMI, which would be looked upon for some short-term trading impetus later during the NA session.

Technical levels to watch

A follow through buying interest has the potential to continue lifting the pair towards 1.1975-80 intermediate hurdle ahead of the key 1.20 psychological mark. On the flip side, retracement back below 1.1925-20 zone could get extended towards the 1.1900 handle, which if broken might turn the pair vulnerable to drop below 1.1875 intermediate level and test 1.1840-35 strong horizontal support.