EUR/USD sticks to modest daily gains above 1.1400 handle
• A modest USD rebound keeps a lid on early up-move to near three-week tops.
• EUR further weighed down by growing concerns over slowing Euro-zone growth.
• Some cross-driven strength helps limit downside and remained supportive.
The EUR/USD pair trimmed a part of its early strong gains to near three-week tops, albeit has managed to hold comfortably above the 1.1400 handle.
The pair built on last week's positive momentum and continued gaining positive traction for the fourth consecutive session on Monday, though a modest US Dollar uptick kept a lid on any strong follow-through.
With investors looking Friday's softer-than-expected US monthly jobs report, the latest Brexit headlines-led slump in the British Pound, helped the greenback to regain some positive traction on the first trading day of the week.
Adding to this, today's dismal Euro-zone Sentix investor confidence index for Dec. added to the recent concerns over slowing economic growth in the Euro-zone and further collaborated towards capping any runaway rally for the shared currency.
Despite a combination of negative factors, some cross-driven strength, stemming out of the ongoing upsurge in the EUR/GBP cross remained supportive of the pair’s modest daily gains.
Technical levels to watch
The 1.1445-50 region might continue to act as an immediate resistance, above which the pair is likely to aim towards reclaiming the key 1.1500 psychological mark. On the flip side, sustained weakness below the 1.1400-1.1390 region might negate any near-term bullish outlook and turn the pair vulnerable to accelerate the fall towards testing the 1.1345-40 support zone.