EUR/USD rallies to 1.1400 handle, over 1-week tops
• Remains well bid for the second straight session amid the ongoing USD slide to 4-week lows.
• Bullish traders largely shrug off today's disappointing German Ifo business survey results.
The EUR/USD pair continued scaling higher through the mid-European session and jumped to over one-week tops, around the 1.1400 handle in the last hour.
Having posted a session low near the 1.1335 region, the pair managed to regain positive traction for the second consecutive session and the up-move was supported by broad-based US Dollar weakness.
Expectations that the Fed might slow, or even pause its rate hike cycle in 2019 continued exerting downward pressure on the greenback and turned out to be one of the key factors driving the pair higher.
Bullish traders largely shrugged off today's disappointing German Ifo business climate index, with the prevalent USD selling bias turning out to be an exclusive driver of the pair's ongoing positive momentum.
It, however, remains to be seen if the up-move is solely led by some near-term short-covering or is backed by any genuine buying, especially after last week's dovish shift by the ECB and dismal Euro-zone macro data.
Market participants now look forward to the US economic docket, featuring the release of housing market data, for some short-term trading impetus ahead of the highly anticipated FOMC meeting, starting today.
Technical levels to watch
On a sustained move above the 1.1400 handle, the pair is likely to dart towards testing the 1.1425-30 intermediate hurdle en-route the 1.1440-50 supply zone. On the flip side, the 1.1370 level now becomes immediate support to defend, which if broken might accelerate the fall towards 1.1340 area before the pair eventually drops back to the 1.1300 handle.