EUR/USD: Bulls still targeting 1.2000 amid weaker Treasury yields?

Having found fresh bids near 1.1950 levels, the EUR/USD pair extended its bullish consolidation phase into late-Asia, as the bulls await the sentiment on the European open for the next move higher to reclaim 1.20 handle.

EUR/USD: N. Korea fuelled risk-off supports                           

The spot is seen fighting hard to regain the bids, after having failed several attempts to take-out stiff resistances located near 1.1985 region. Although the sentiment around the funding currency, EUR, remains underpinned amid persisting risk-off moods, ignited by escalating North Korean tensions.

Additionally, tumbling Treasury yields amid reduced demand for risk assets weigh down broadly on the US dollar, restricting the corrective slide in the EUR/USD pair. The major reached the highest levels in two and a half year earlier on the day at 1.1986, before meeting fresh supply to hit daily lows of 1.1955.

Looking ahead, the spot awaits the German Gfk consumer climate data for fresh incentives on the Euro, as the economic calendar continues to remain light in Europe. Meanwhile, the US docket offers the S&P/CS Composite-20 HPI y/y and CB Consumer Confidence, which will offer fresh impetus to the USD ahead of the US payrolls data due out on Friday.

EUR/USD Technical Set-up  

According to Valeria Bednarik, Chief Analyst at FXStreet, “Short term, the pair is poised to keep advancing, having settled above its early high of 1.1959, now the immediate support, and with technical indicators in the 4 hours chart maintaining their bullish slopes, despite being in overbought territory. In the same chart, the 20 SMA keeps heading north well above the larger ones, but below the current level, favoring an extension up to the 1.2000 region and beyond for this Tuesday. Support levels:  1.1960 1.1920 1.1870 Resistance levels: 1.2000 1.2030 1.2065.”