EUR/USD flirting with highs near 1.0900

The single currency has gathered extra traction following the opening bell in Euroland on Tuesday, now sending EUR/USD to test fresh daily highs near 1.0890.

EUR/USD boosted by risk-on feeling

The upbeat momentum around EUR stays everything but abated during the first half of the week, as market participants continue to digest the recent result from the French elections, while polls continue to see centrist candidate Emmanuel Macron winning the second round vs. Marine Le Pen on May 7.

Looking ahead, the ongoing rally in spot would be put to the test in light of the ECB gathering on Thursday. The central bank is expected to leave its monetary status quo unchanged, although President Draghi could deliver a dovish message, particularly after earlier comments that the March statement was somewhat over-interpreted.

Nothing in the euro calendar today, whereas house prices tracked by the S&P/Case-Shiller index, New Home Sales and the key Consumer Confidence gauged by the Conference Board are all due in the US docket.

EUR/USD levels to watch

At the moment, the pair is gaining 0.18% at 1.0887 facing the next hurdle at 1.0905 (high Mar.27) followed by 1.0936 (2017 high Apr.24) and finally 1.1000 (psychological handle). On the flip side, a breach of 1.0838 (200-day sma) would target 1.0819 (low Apr.24) en route to 1.0780 (high Apr.20).