EUR/USD firmer, approaching 1.2000

The upbeat sentiment around the shared currency stays unabated during the first half of the week, with EUR/USD hovering over the 1.1975/80 band ahead of the opening bell in Euroland.

EUR/USD closer to 1.2000

Spot is advancing for the third consecutive session so far today, breaking above the consolidative theme that prevailed during most of August and gearing up for a test of the psychological barrier at 1.2000 the figure in the near term.

Markets remain (very) bearish on the greenback, forcing the US Dollar Index (DXY) to recede to the vicinity of the key support at the 92.00 handle, levels last seen in May 2016.

On the EUR-side, the recent speech by President Draghi at the Jackson Hole Symposium was perceived as everything but dovish by market participants, giving extra wings to the pair and opening the door for further upside.

In the data space, German consumer climate tracked by GfK rose to 10.9 for the month of September, a tad above estimates. Across the pond, home prices gauged by the S&P/Case-Shiller index are due along with the speech by Chicago Fed C.Evans (voter, centrist).

EUR/USD levels to watch

At the moment, the pair is up 0.02% at 1.1980 facing the next hurdle at 1.1986 (2017 high Aug.29) followed by 1.2000 (psychological level) and finally 1.2042 (monthly low July 2012). On the flip side, a breach of 1.1917 (low Aug.28) would aim for 1.1831 (10-day sma) and then 1.1810 (21-day sma).