EUR/USD bulls eyeing a decisive break through 1.1800 handle
| • German political development underpins shared currency.
• Final EZ CPI print matches original estimates.
• Persistent USD weakness provides an additional boost.
The EUR/USD pair built on its strong up-move back above 50-day SMA, with bulls now aiming for a decisive break through the 1.1800 handle.
The shared currency gained traction at the start of a new week after Germany's Social Democrats agreed on Friday to open coalition talks with Chancellor Angela Merkel, paving the way to end the country's political deadlock.
This coupled with some renewed US Dollar selling bias, amid some doubts over the passage of the long-awaited US tax reform bill, further collaborated to the pair's strong up-move through the early NA session.
Meanwhile, today's mostly in-line EZ CPI print, coming at 1.5% y-o-y for November, helped offset a goodish pickup in the US Treasury bond yields and remained supportive of the prevalent strong bid tone surrounding the major.
It, however, remains to be seen if bulls are able to maintain their dominant position or the pair's up-move once again fizzles out near 100-day SMA in absence of any major market moving economic releases.
Technical levels to watch
A clear breakthrough 100-day SMA hurdle near the 1.1800-1.1805 region is likely to accelerate the up-move towards 1.1825-30 intermediate hurdle en-route 1.1860-65 supply zone.
On the flip side, 50-day SMA near the 1.1765-60 region is likely to protect the immediate downside, which if broken might drag the pair towards the very important 1.1715 horizontal support.
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