EUR/USD: Bulls gathering pace for a break above 1.1960?

Having refreshed two and a half year peaks at 1.1960 in Asia, the EUR/USD pair embarked upon a minor retreat, as the bulls took a breather after the 180-pips massive rally.

The ECB after Jackson Hole: taper tiptoeing will continue - ING

Over the last hours, however, the EUR/USD pair appears to have stalled its retreat and has entered a phase of bullish consolidation near 1.1925 levels, as the dust settles over Yellen’s and Draghi’s speeches led solid gains.

At the Jackson Hole Symposium, the ECB President Draghi refrained from talking down the Euro, while Yellen made no comments on the monetary policy, both central bankers’ drove the EUR/USD pair to its highest levels since January 2015.

Looking ahead, the spot could extend its bullish momentum towards 1.2000 – the natural psychological levels, as the European traders will hit their desks and react positively to Draghi’s optimistic comments on the economy as well as no EUR jawboning.

Meanwhile, amid holiday-thinned markets and a lack of first-tier macro updates, the major will continue to benefit from Yellen-led broad based US dollar weakness.  

EUR/USD Technical Set-up  

According to Valeria Bednarik, Chief Analyst at FXStreet, “ A break above the mentioned high (1.1940) could see the pair extending its gains up to 1.2030 short term, with steady gains beyond this last favoring a continued advance towards the 1.2300 region, during the upcoming days, a major long term resistance. Support levels:  1.1910 1.1860 1.1820 Resistance levels: 1.1940 1.1985 1.2030."