EUR/USD spikes back to 1.19 handle on N. Korean headlines

The EUR/USD pair reversed early dip to 1.1868 area and is now looking to build on its up-move back above the 1.1900 handle.

The pair's uptick of around 20-25 pips, over the past hour could be attributed to the latest headlines coming out of the UN Conference on Disarmament in Geneva, which seems to have triggered a fresh wave of US Dollar selling pressure. 

While addressing the UN Conference on Disarmament in Geneva, N. Korea's ambassador Han Tae Song said that the US will receive more gift packages as long as it relies on reckless provocations and futile attempts to put pressure on the DPRK.

   •  N. Korean Ambassador: recent self-defense measures are a gift package to the US

Meanwhile, the market seems to have digested today's minor disappointment from the final Euro-zone services PMI prints and retail sales data, with renewed USD weakness acting as an exclusive driver of the pair's recovery move from session lows.

Next on tap would be the release of US factory orders data and speeches from various Fed officials. Today's relatively lighter economic docket is unlikely to act as a game changer as investors remained on the sidelines ahead of Thursday's ECB monetary policy decision. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes, "the 4 hours chart shows that the pair is neutral-to-bearish, extending below a horizontal 20 SMA, and with the Momentum indicator stuck around its 100 level, but the RSI indicator gaining bearish traction, now around 45. 1.1860 is the immediate support, followed by last week's low of 1.1820, with a break below this last favoring a test of the 1.1790 region. The pair would need to advance beyond 1.1920 to shrug off the short term negative tone and recover up to the 1.1950/70 price zone."