EUR/USD surges through 1.18 handle ahead of US durable goods orders

The EUR/USD pair extended post-German Ifo recovery move and surged through the 1.1800 handle, climbing around 50-60 pips from session lows touched earlier today.

Currently placed at the top end of a three-week old trading range, around 1.1820-30 band, today's better-than-expected release of German Ifo business climate index provided some fresh bullish impetus to the shared currency. 

   •  Germany: No signs of weakness - ING

This coupled with possibilities of some stops being triggered on a decisive move back above the 1.1800 handle further collaborated towards the pair's sharp upsurge over the past hour or so.

It, however, remains to be seen if the pair is able to break through the near-term trading range or once again meets with some fresh supply at higher level amid cautious trade ahead of the much awaited Jackson Hole Symposium. 

   •  EUR/USD rangebound between 1.1730/1.1885 – UOB

The key speeches by the Fed Chair Janet Yellen and the ECB President Mario Draghi might shed some fresh light on the path of interest rate hikes in the US and on possible stimulus unwinding efforts by the ECB, which would eventually trigger the next leg of directional move for the major.

   •  Jackson Hole: Draghi and Yellen amongst market movers today – Danske Bank

Ahead of the big event risk, the release of durable goods orders from the US would also be looked upon to grab some short-term trading opportunities.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "the 4 hours chart shows that the price is hovering right above its 20 and 100 SMAs, both horizontal and directionless, whilst technical indicators hold above their mid-lines, also lacking directional strength. 1.1730, is the immediate support ahead of the mentioned 1.1680/90 region, while above 1.1830, 1.1860 and 1.1909 are the next intraday resistances."