EUR/USD jumps back above 1.1800 handle

   •  Recovers part of the post-ECB slide on renewed USD weakness.
   •  US tax bill uncertainty weighing on the buck.
   •  Traders ignore weaker EZ trade data. 

The EUR/USD pair finally broke out of its early European session trading range and is now looking to build on its momentum beyond the 1.1800 handle.

The pair found decent buying interest near 50-day SMA and was being supported by some renewed US Dollar selling bias. With investors still digesting dovish FOMC outlook, fresh concerns over US tax reform plans failed to assist the greenback to preserve overnight gains led by upbeat US economic data.

The shared currency gained further traction after Bundesbank raised German GDP growth and inflation forecasts, which helped the pair to recover part of the post-ECB slide. 

Meanwhile, the market seems to have largely ignored today's weaker-than-expected Euro-zone trade balance data, coming in at €19 billion for October as against €24.4 billion expected, with the prevalent weaker tone around the USD acting as an exclusive driver of the pair's momentum on Friday.

Currently hovering around the 1.1800 handle, it remains to be seen if the pair is able to build on the momentum beyond 100-day SMA hurdle or not so hawkish ECB projections prompt some fresh selling pressure at higher level.

Next on tap would be the release of second-tier US economic data - Empire State Manufacturing Index, Industrial Production and Capacity Utilization Rate, which would be looked upon for some short-term trading impetus.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: "Technically, the pair presents a neutral-to-bullish stance short-term as in the 4 hours chart, technical indicators remain within positive territory, but without directional strength whilst the price held above its 20 and 200 SMAs that anyway remain horizontal. The 1.1800 level is the 38.2% retracement of the latest daily slide. The pair would need, however, to advance beyond 1.1830 to gain upward strength, with selling interest  waiting  in the 1.1870 region. Supports from the current level came at 1.1750 and 1.1715, with limited chances of a break of the extremes of the range, at 1.1715 and 1.1870, this Friday."