EUR/USD through 1.0900, fresh 4-month peaks

The increasing offered bias around the greenback is pushing EUR/USD to print fresh multi-month tops beyond the1.0900 key handle.

EUR/USD stronger after ‘Trumpcare’ failure

The pair continues its march higher following the opening gap at the beginning of the week, trading closer to the critical 1.0900 barrier and always against the backdrop of a relentless selling interest surrounding the buck.

USD stays under heavy pressure after House Republican rejected on Friday the American Health Care Act, pushed by President Donald Trump in order to replace ‘Obamacare’.

Gauged by the US Dollar Index, the buck broke below the key support at the 99.00 support earlier in the European session, opening the door for a potential test of the critical 200-day sma, currently at 98.56.

In the data space, auspicious IFO readings for the month of March in Germany gave extra legs to the pair, while Chicago Fed C.Evans (voter, dovish) is only due to speak later in the US docket.

Adding extra support to EUR, speculative net shorts have been trimmed to levels last seen in June 2014 during the week ended on March 21 according to the latest CFTC report.

EUR/USD levels to watch

At the moment the pair is up 0.95% at 1.0902 facing the immediate hurdle at 1.0933 (61.8% Fibo of 1.1300-1.0339) followed by 1.1094 (78.6% Fibo of 1.1300-1.0339) and finally 1.1300 (high Nov.9 2016). On the flip side, a breakdown of 1.0838 (low Mar.27) would target 1.0759 (low Mar.24) en route to 1.0704 (low Mar.16).