The EUR/USD continues to advance steadily on Monday. After touching an intraday low of 1.1912 in the Asian session, the pair has advanced 45 pips, rising in the European morning to 9-week highs at 1.1957.
The common currency keeps its pulse amid renewed hopes of forming a grand coalition in Germany. Merkel’s party has opened the doors to reissue the great pact that they had with the Social Democrats in the last legislature, which has given impetus to the euro in the last hours.
The economic calendar is scant in data today, as only the EU Financial Stability Analysis report and sales of new US homes are expected, which will be published just before the Dallas Fed manufacturing index.
With the pair now trading above 1.1935/40, 0.09% above its opening price, Slobodan Drvenica, analyst at Windsor Brokers, notes that Friday’s bullish acceleration is approaching an initial target of 1.1965 today. Above this level, the resistance to reach wait at 1.2000 and 1.2033.
On the downside, the main support awaits at 1.1911. Further down, the declines can take the euro towards 1.1886 and the ceiling of the daily cloud located at 1.1877.
Written by: FXStreet