EUR/USD surges to 1.21 neighborhood as USD tumbles to 33-month lows

The EUR/USD pair built on previous session's ECB-led strong gains and spiked to its highest level January 2015, closer to the 1.2100 handle.

The pair on Thursday rallied hard following the ECB President Mario Draghi's comments that bulk of decision on tapering the central bank's massive stimulus program would be made in October. 

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Draghi, however, showed broad dissatisfaction with inflationary trajectory and attributed the downward revision of inflation projection to the recent rally in the shared currency. 

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The pair's upward trajectory got an additional boost through Asian session on Friday amid persistent greenback selling bias. Fading expectations of any additional Fed rate hike action by the end of this year dragged the key US Dollar Index to fresh 33-month lows, closer to the 91.00 handle and has been one of the key factors driving the pair higher. 

Today's economic docket lacks any major market moving economic releases and hence, the USD price-dynamics would remain an exclusive driver of the pair's movement on the last trading day of the week.

Technical levels to watch

Bulls would be eyeing for a strong follow through buying interest beyond the 1.2100 handle, above which the pair is likely to aim towards testing its next hurdle near the 1.2165-70 region with some intermediate resistance near 1.2120 area.

On the flip side, any pull-back from higher levels might now find immediate support near the key 1.2000 psychological mark, which if broken might trigger a corrective slide towards 1.1970 level en-route the 1.1900 handle.