EUR/USD tests highs near 1.1840

The lack of direction around the greenback is motivating EUR/USD to climb to the area of daily highs around 1.1840.

EUR/USD finds support near 1.1810

Spot is advancing for the fourth consecutive session so far today, extending the up move from last week’s lows in the 1.1690/85 band and always amidst dwindling upside momentum around the buck.

It is worth recalling that Friday’s US inflation figures triggered a strong pullback in the greenback, giving some extra oxygen to the pair’s recovery, which is trading at shouting distance from recent tops in the mid-1.1800s.

In the meantime, market participants will focus on the ECB and FOMC minutes later in the week, both expected to shed some more light on the prospects of QE tapering on one side, an balance sheet reduction on the other.  

EUR/USD levels to watch

At the moment, the pair is gaining 0.03% at 1.1826 facing the next up barrier at 1.1846 (high Aug.11) seconded by 1.1894 (high Aug.3) and finally 1.1911 (2017 high Aug.2). On the other hand, a breakdown of 1.1722 (21-day sma) would aim for 1.1687 (low Aug.9) and then 1.1611 (low Jul.26).