The EUR/USD has taken out 1.2500, however, it has since pulled back and is now consolidating. We are looking for a slight pullback to 1.2320, before a move higher into 1.2550. We have our stop at 1.2150
EUR/USD 240 min Chart - EUR/USD is Bullish
What will the Economic Data do this week?
The last week has all been about the USD. Or more to the point the weakness in the USD. We’ve seen the US Dollar Index in bear mode and there has been little that has been able to slow it down recently.
That’s been driving the majors higher, including the EUR/USD. During the week we hit 1.2500 which was a key upside resistance level. However, it appears that there might be more uspide to come.
This week the Greenback will face some very stiff headwinds in the form of fundamental data. Janet Yellen will lead her final meeting of the Federal Reserve before handing over the reins. While there is no change expected in rates we will be looking for any hints on the language used.
In the Eurozone, CPI data is also out and that will be important for the EUR/USD. It seems that the ECB want to unwind QE and the headline number will play a role.
And finally on Friday we have US employment data. This is always a big market mover and any weakness here will likely send the USD tumbling further.
Technical Analysis - The Key Levels
The EUR/USD finally took out 1.2500 last week, however that is still the major levels for traders. If we can break above that we have some more upside resistance around 1.2600 that we will be pushing into. If we fall away watch 1.2300 closely as that could see us drop back into range.
EUR/USD - Key Levels
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