EUR/USD gains further beyond 1.2300 mark, recovers weekly losses

   •  Persistent USD selling helps build on overnight sharp recovery.
   •  Global risk aversion trade boosts EUR’s funding currency status.

The EUR/USD pair built on previous session's sharp recovery move from multi-week lows and continued gaining traction further beyond the 1.2300 handle. 

Persistent US Dollar selling bias, triggered by worries over a global trade war after the US President Donald Trump announced to impose tariffs on imported steel and aluminium, was seen as one of the key factors driving the pair higher. 

Meanwhile, a selloff across global equity markets further supported the Euro's funding currency status and collaborated to the pair's goodish rebound of over 150-pips from previous session swing low level of 1.2155. 

Currently trading around the 1.2320 region, the pair has now turned positive for the week and might now be aiming to head back towards weekly tops resistance amid thin US economic docket, featuring the only release of Revised UoM Consumer Sentiment index. 

Technical levels to watch

Immediate resistance is pegged near the 1.2350-55 area (weekly tops), above which the pair is likely to accelerate the up-move towards reclaiming the 1.2400 handle. On the flip side, weakness back below the 1.2300 handle now seems to find immediate support near the 1.2270 level, which if broken might turn the pair vulnerable to head back towards challenging the 1.2200 handle.