EUR/USD off highs, still comfortable above 1.1900 handle

The EUR/USD pair trimmed some of its early gains and retreated around 20-25 pips from weekly tops, near mid-1.1900s touched during early European session.

The pair found some sellers at higher levels amid a modest pickup in the US Treasury bond yields, which helped the US Dollar Index to recover majority of its early lost ground. 

This coupled with a strong recovery across European equity markets further dented the Euro's funding currency status and collaborated to the pair's retracement back towards the 1.1925-30 region.

Despite of the good two-way moves witnessed so far, the pair has held within a familiar trading range as investor seemed refraining from placing aggressive bets ahead of the ECB monetary policy meeting on Thursday.

   •  ECB: Room to postpone tapering is limited - ING

In the meantime, today's US economic docket, featuring the release of trade balance data and ISM non-manufacturing PMI could provide some short-term trading opportunities.

Technical levels to watch

Valeria Bednarik, Chief Analyst at FXStreet notes: "There's an immediate intraday resistance at 1.1960, with an upward acceleration through the level opening doors for an extension up to 1.2000. Further gains seem unlikely amid traders turning cautious ahead of Draghi."

"The pair has been finding buyers around 1.1880/90 during the past few sessions, with a stronger intraday support at 1.1860. Below it, 1.1822, last week low, is the next bearish target and support" she added.