EUR/USD jumps back to 1.20 handle

The EUR/USD pair extended its post-FOMC recovery move from 1.1865-60 support zone and has now jumped back to the key 1.2000 psychological mark.

With markets looking past Wednesday's hawkish Fed outlook, some renewed US Dollar selling bias has been one of the key factors driving the pair higher for the second consecutive session.

Meanwhile, Friday's strong up-move, further supported by better-than-expected flash Euro-zone PMI prints for September, might have taken out some stops near mid-1.1900s and could have contributed to the pair's spike over the past hour or so.

The pair's up-move got an additional boost after the ECB President Mario Draghi, at the ECB Youth Dialogue at Trinity College in Dublin, refrained from commenting anything on the monetary policy and the recent Euro strength.

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Technical levels to watch

A strong follow through buying interest beyond the 1.20 handle has the potential to continue lifting the pair towards the top end of monthly trading range resistance near the 1.2050-60 region. 

On the flip side, any retracement back below 1.1975-70 area now seems to find support near the 1.1955-50 region, which if broken could drag the pair back towards retesting the 1.1900 important support.