EUR/USD firmer, approaches fresh tops near 1.2000

• The pair gains further momentum on Monday, closer to 1.20.
• The greenback drops further and test lows near 92.30.
• The 1.2000/1.2020 region is seen as critical barrier.

The buying pressure around the shared currency is picking up extra pace at the beginning of the week and is now pushing EUR/USD to the vicinity of the critical 1.2000 milestone.

EUR/USD looks to ECB-speakers

The rally in the European currency stays well and sound on Monday, advancing to the boundaries of the critical 1.2000 handle and closer to the key up barrier at 1.2020, home of the 200-day sma.

The continuation of the softer bias around the greenback has prompted the US Dollar Index (DXY) to retreat to fresh 2-week lows in the 92.40/35 band after clinching 2018 tops in the mid-93.00s last week.

In the data space, speeches by ECB’s Praet, Lautenschlaeger and Coeure are due throughout the session. On the USD-side, Cleveland Fed L.Mester (voter, hawkish) said on CNBC the Fed could have to raise rates beyond 3%.

EUR/USD levels to watch

At the moment, the pair is up 0.40% at 1.1989 and a break above 1.2020 (200-day sma) would target 1.2048 (38.2% Fibo of 1.2413-1.1823) en route to 1.2096 (21-day sma). On the flip side, immediate support aligns at 1.1935 (10-day sma) seconded by 1.1823 (2018 low May 8) and finally 1.1768 (78.6% Fibo of November-February up move).