EUR/USD clings to gains near 1-month tops, just below mid-1.1900s

   •  USD selling remains unabated despite rebounding US bond yields.
   •  ECB’s monthly bulletin reaffirms solid/broad-based economic growth.
   •  Second-tier US data awaited for fresh trading impetus. 

The EUR/USD pair held on to its strong gains near one-month tops, albeit remained capped below an important supply zone near mid-1.1900s. 

The pair maintained its strong bid tone for the second consecutive session and remained supported by persistent greenback selling bias. Despite a goodish rebound in the US Treasury bond yields, the key US Dollar Index extended overnight slide, falling to levels not seen in more than three months, and underpinned the major.

Meanwhile, the release of ECB's economic bulletin for December, highlighting solid and broad-based economic expansion in the region and expectations that the underlying inflation will rise gradually, remained supportive of the already positive sentiment surrounding the shared currency. 

The up-move, at least for the time being, now seems to have stalled ahead of November monthly highs resistance as traders now look forward to the second-tier US economic releases - initial weekly jobless claims, goods trade balance data and Chicago PMI, for fresh impetus. 

Technical levels to watch

A follow-through buying interest beyond 1.1950-60 area has the potential to 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 could accelerate the profit-taking slide back towards 1.1855 horizontal support.