EUR/USD Bulls Likely To Take a Brief Pause Near 1.2600 Handle

The EUR/USD pair extended its upward trend through the Asian session on Friday and jumped to its highest level since December 2014 amid renewed US Dollar selloff. The buck failed to find any buyers and continues to lose ground even as the incoming economic data has been pointing to the underlying strength in the domestic economy. Also, expectations about converging rate differential between the Fed and other major global central banks have eroded the greenback's yield advantage and has failed to lend any support. 

Meanwhile, the pair took out previous multi-year highs resistance at 1.2538 and, so far, is holding in positive territory for the sixth consecutive session. There aren't any major market-moving economic releases due from the Euro-zone and hence, the US economic docket, featuring the release of housing market data and Prelim UoM Consumer Sentiment, would now be looked upon for some short-term trading impetus. In the meantime, 

From a technical perspective, the pair remains poised to extend the bullish trajectory toward testing the 1.2600 handle, marking 61.8 percent Fibonacci retracement level of 1.3991-1.0341 downfall. With short-term technical indicators approaching near-term oversold conditions, the mentioned hurdle might hinder the pair's strong bullish momentum.

On the flip side, any meaningful profit-taking slide now seems to take support near the key 1.2500 psychological mark. Any subsequent slide might prompt some additional weakness but is likely to find some aggressive buying interest near the 1.2430-25 support area.