EUR/USD climbs to fresh session tops around mid-1.1400s, will it sustain?

December 31, 2018

EUR/USD climbs to fresh session tops around mid-1.1400s, will it sustain?

• The USD bulls held on the defensive and helped regain positive traction.

• Further gains likely to remain capped amid year-end thin liquidity conditions.

The EUR/USD pair built on its steady intraday climb and is currently placed at the top end of its daily trading range, around mid-1.1400s.

The pair quickly reversed an Asian session dip to the 1.1420 region and turned positive for the third consecutive session amid some renewed US Dollar selling pressure.

Expectations of a dovish Fed next year, along with a partial US government shutdown kept the USD bulls on the defensive and turned out to be one of the key factors driving the pair higher.

Apart from broad-based USD weakness, the uptick lacked any obvious fundamental catalyst and hence, runs the risk of running out of steam ahead of Friday's swing high, nearing 100-day SMA important barrier.

Moreover, traders might also refrain from placing any aggressive bids amid relatively thin liquidity conditions on the New Year's Eve and might further collaborate towards capping gains.

Hence, it would be prudent to wait for a sustained breakthrough the mentioned hurdle before traders start positioning for any further near-term positive momentum.

Technical levels to watch

EUR/USD

Overview:
    Today Last Price: 1.1448
    Today Daily change: 6.0 pips
    Today Daily change %: 0.0524%
    Today Daily Open: 1.1442

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