EUR/USD flirting with highs near 1.2350 ahead of ZEW

• The upbeat tone stays well and sound around the single currency.
• Spot navigates the mid-1.2300s, clinching fresh daily highs.
• German/EMU ZEW survey next of relevance in the region.

The European currency is extending the upside momentum vs. the greenback during the first half of the week and is helping EUR/USD to move higher to the 1.2350 region, or daily highs.

EUR/USD up on ECB, focused on ZEW

Spot managed to bounce off recent lows in the vicinity of 1.2250 as USD-sellers returned to the markets to cash up part of the recent strong advance in the buck.

In addition, (omnipresent) uncertainty around the Trump administration forced the greenback to once again fade the bull run to levels beyond the psychological 90.00 milestone when tracked by the US Dollar Index (DXY).

Furthermore, the demand for the European currency accelerated on Monday after news agency Reuters cited ECB members appear ‘comfortable’ with markets pricing the first rate hike at some point in H2 2019. The central bank is also expected to terminate its QE programme this year.

Data wise in the euro area, the German/EMU ZEW survey will be the only release of note today. Additionally, global trade remains in centre stage, as President Trump is expected to announce tariffs worth $60 billion on Chinese imports at some point in the second half of the week.

EUR/USD levels to watch

At the moment, the pair is up 0.06% at 1.2344 and a break above 1.2414 (high Mar.14) would target 1.2448 (high Mar.8) en route to 1.2557 (2018 high Feb.16). On the flip side, the next support emerges at 1.2258 (low Feb.19) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18).