EUR/USD gains further beyond 1.23 handle

   •  Subdued USD demand helps recover from over 1-week lows.
   •  Runs the risk of reversing gains amid holiday-thinned trading conditions.

The EUR/USD pair caught some bids on Friday and was now seen building on its positive move beyond the 1.2300 handle.

A subdued US Dollar demand helped the pair to gain some fresh traction and rebound from over one-week lows touched in the previous session. In absence of any fundamental trigger, the up-move could be attributed to some short-covering and seemed lacking any strong conviction. 

Moreover, with global markets shut on the back of Good Friday holiday, the bullish move runs the risk of a sudden reversal amid relatively thin liquidity conditions. Hence, it would prudent to wait for a strong follow-through buying interest before positioning for any further near-term up-move. 

Technical levels to watch

Immediate resistance is pegged near the 1.2340 level, above which a fresh bout of short-covering could lift the pair back towards reclaiming the 1.2400 handle.

On the flip side, sustained weakness below the 1.2300 handle is likely to accelerate the fall towards the 1.2240 horizontal support, which if broken might turn the pair vulnerable to slide further towards testing the 1.2200-1.2180 support area.