EUR/USD in highs beyond 1.3860

FXStreet (Edinburgh) - The buying interest seems to be re-emerging around the euro on Monday, now lifting the EUR/USD well beyond the critical barrier at 1.3800.

EUR/USD in 4-day highs

The pair is now convincingly surpassing previous tops near 1.3830 amidst increasing buying pressure, as traders seems to leave behind the effects of PMI prints below expectations. Adding to the bullish sentiment, the greenback, in terms of the DXY, breached the psychological support at 80.00. “The positive technical tone of the euro has not been broken, even though it fell to nearly $1.3750 and closed below it 20-day moving average for the first time in over a month… It found good bids below $1.38. To truly weaken the technical picture, the euro has to take out the $1.3680-$1.3700 area. The new trading range seems to be $1.3750-$1.4000 and since the bottom end of the range was last tested, the rule of alternation implies risk to the upside”, suggested analysts at BBH.

EUR/USD levels to watch

The pair is now advancing 0.47% at 1.3861 with the next resistance at 1.3900 (psychological level). On the flip side, a break below 1.3760 (low Mar.24) would target 1.3749 (low Mar.20) and then 1.3722 (50% of 1.3477-1.3967).

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