EUR/USD advances to highs above 1.0800

EUR/USD is up smalls early in the European morning, hovering over the 1.0800 handle and trading within a tight range for the time being.

EUR/USD looks to Trump

The pair keeps the trade in the upper bound of the weekly range, a tad lower than recent highs near 1.0820 amidst a mild pick up in the risk-on sentiment.

Market participants should closely follow tonight’s vote on the American Health Care Act, where Republicans appear to struggle to pass the bill, as failing to do so could spark delays on the implementation of Trump’s fiscal stimulus plan, apparently the next key driver for markets for the near to medium term.

German Consumer Sentiment gauged by Gfk and the ECB’s Economic Bulletin are due in Euroland later today, while the usual weekly report on the labour market and February’s New Home Sales are expected across the pond.

EUR/USD levels to watch

At the moment the pair is gaining 0.06% at 1.0802 and a breakout of 1.0825 (high Mar.22) would target 1.0829 (2017 high Feb.2) en route to 1.0873 (high Dec.8 2016). On the flip side, the initial down barrier aligns at 1.0776 (low Mar.22) followed by 1.0717 (low Mar.21) and finally 1.0704 (low Mar.16).