EUR/USD keeps daily tops near 1.2350 ahead of US ISM

• The demand for the single currency stays firm on Monday.
• The pair trades in session peaks in the 1.2340/50 band.
• US ISM Manufacturing and Markit’s PMI next of relevance.

The softer tone around the greenback keeps fuelling the up move in EUR/USD to the area of daily highs in the 1.2340/50 band.

EUR/USD attention to US ISM

The pair is adding to Friday’s gains, advancing for the second session in a row albeit still navigating the lower bound of the range in the mid-1.2300s, coincident with the key short-term support line off YTD lows (January 9).

The softer tone in the greenback, a better mood surrounding the risk-associated space and thin trade conditions are all collaborating with today’s up move in spot. Investors found in the recently announced Chinese tariffs on US imports another reason to sell the buck amidst unabated effervescence on a US-China trade war.

Later in the NA session, the US ISM will publish its Manufacturing PMI for the month of March, which is expected to come a tad lower that February’s 60.8.

EUR/USD levels to watch

At the moment, the pair is advancing 0.12% at 1.2335 and a break above 1.2477 (high Mar.27) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.16). On the other hand, immediate contention emerges at 1.2282 (low Mar.29) followed by 1.2241 (low Mar.21) and finally 1.2206 (low Feb.9).