The euro touched a two-year high against the dollar briefly before falling back, setting the stage for further gains amid weak dollar sentiment, dealers said.
"The uptrend continues for the euro," Nick Mertchev, economist at HBOS Treasury services said.
There are indications that portfolio flows are heading for Europe rather than the US.
Given the negative environment for the dollar, chances of the euro hitting $0.96 looks possible. The afternoon's US trade data could be the trigger, he said.
At 1.02pm, the euro was at $0.9592 after hitting a high of $0.9598 a few minutes before.