EUR/USD spikes to session tops; will it sustain ahead of ECB?

Having posted a session low level near the 1.1915 region, the EUR/USD pair caught some fresh bids and refreshed weekly tops during early European session.

The pair's sharp spike of around 30-35 pips over the past hour or so lacked any catalyst and was primarily driven by some renewed greenback selling pressure. In fact, the key US Dollar Index has now dropped closer to the 92.00 handle and seems to be one of the key factors driving the pair higher.

Meanwhile, the up-move could also be attributed to some repositioning trade ahead of the much awaited ECB monetary policy decision. Investors would be looking for any clues over the central bank's plan to start tapering its massive bond-purchase program, currently paced at €60 billion a month.

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The spotlight, however, would be on the ECB President Mario Draghi's post-meeting presser, where comment on the recent strength of the Euro and (or) timeline for QE tapering would act as a fresh catalyst for the pair's next leg of directional move.

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Technical levels to watch

Bulls would be eyeing for a strong follow through buying interest beyond 1.1950-60 hurdle, above which the pair is likely to dart towards reclaiming the key 1.20 psychological mark before eventually heading towards last week's swing high resistance near 1.2070 level.

On the flip side, the 1.1900 handle remains immediate strong support to defend, which if broken decisively should accelerate the fall towards 1.1830-25 intermediate support en-route the 1.1800 mark and 1.1780-75 support zone.