EUR/USD testing 2017 highs near 1.0950

The risk-on sentiment stays unabated so far this week, now pushing EUR/USD to print fresh YTD tops in the mid-1.0900 ahead of the opening bell in Euroland.

EUR/USD firmer ahead of ECB

The pair keeps its march north well and sound during the first half of the week, always against the backdrop of solid risk-on trade and a persistent decline of the greenback.

The optimism around the European currency is not giving signs of exhaustion yet despite market participants seem to have already digested the results from the recent first round at the French elections and a victory of Macron over Le Pen at the second round on May 7 appears almost fully priced in.

On the USD side, traders continue to unwind long positions, forcing the US Dollar Index (DXY) to break below the critical 11-month support (now resistance) line, currently around 98.80 and intensify its bearish note.

In the data space, nothing noteworthy in the Old Continent, whereas the weekly report on US crude oil inventories by the EIA is due later in the NA session.

EUR/USD levels to watch

At the moment, the pair is gaining 0.10% at 1.0945 facing the next hurdle at 1.0950 (2017 high Apr.26) followed by 1.1000 (psychological handle) and then 1.1300 (high Nov.9 2016). On the flip side, a breach of 1.0837 (200-day sma) would target 1.0819 (low Apr.24) en route to 1.0780 (high Apr.20).