EUR/USD: Bulls unstoppable, 1.1940 – a whisker away

• DXY weakness extends into Europe.
• Thin trading underpins.
• Awaits ECB Bulletin and US data for fresh impetus.

The offered tone around the US dollar keeps growing bigger, now pushing the EUR/USD pair to test the key resistance located near 1.1940 levels, Dec 1 highs.

EUR/USD extends the rally above 1.1900

The Asian rebound in the spot gained traction in early Europe, with the rates now flirting with fresh four-week tops reached at 1.1933. The move higher is mainly due to a fresh bout of aggressive selling seen in the US dollar against its main competitors, as the sentiment around the buck remains weighed down by the recent declines in Treasury yields and drop in consumer sentiment.

Haresh Menghani, Analyst at FXStreet notes, “Traders now look forward to the ECB Bulletin and the US macro data for some fresh impetus amid pre-holiday thin liquidity conditions. Today's US economic docket features the usual weekly initial jobless claims, wholesale inventories, goods trade balance and Chicago PMI, due for release later during the early NA session.”

EUR/USD Technical Levels

Menghani adds: “A follow-through buying interest beyond 1.1950-60 zone has the potential continue boosting the pair further towards the key 1.20 psychological mark en-route 1.2030-35 supply zone. On the flip side, the 1.1900 resistance break-point now becomes an immediate support to defend, which if broken might accelerate the profit-taking slide back towards 1.1855 horizontal support.”