EUR/USD hits fresh 2-year highs, approaches 1.2000

EUR/USD gained upside momentum during the American session on the back of a slide of the US dollar. The pair broke above 1.1960 (Asian session highs) and reached at 1.1973, a new 31-month high. The Dollar Index dropped to 92.15, the lowest since May 2016. 

The pair remains near daily highs holding a bullish tone, looking at the 1.2000 handle. The last time it traded above that area was during the first session of 2015. The euro is also higher against it European rivals. 

Rally goes on 

The up move started on Friday after Yellen and Draghi’s speech at Jackson Hole. It broke 1.1830 and jumped, closing on Friday at 1.1920. It opened the week higher and after a modest retreat to the 1.1915 area, rebounded to the upside, resuming the rally. 

EUR/USD levels to watch

At the moment, the pair is trading at 1.1970 with the next immediate resistance seen at 1.2000 (psychological) and then 1.2042 (Jul 2012 low). On the flip side, support now might lie at 1.1960 (Asian session high), 1.1915 (daily low) and 1.1900 (psychological).