Despite receding fears of trade wars, the US Dollar failed to pick up momentum on Monday, thus allowing EUR/USD to breach the psychological 1.24 level and reach a new six-week high of 1.2450.
The rate managed to breach the monthly R1 and a medium-term channel along the way. Further advance, however, did not follow, as the pair remained located slightly below the weekly R2.
From technical point of view, the last few trading sessions show that the Euro has initiated a new wave up after reversing from the senior channel on March 20. This suggests that the Euro could continue climbing even further this week. However, bulls might allow for a slight correction south down to the 1.24 area today.
In case bulls continue to dominate, upside target is 1.2550 which has provided strong support beforehand.
