The EUR/USD has really turned the corner and is now in bull mode. I suspect that we are setting up for a break of the most recent highs at 1.2100.
I’m looking to enter on a pullback at 1.2000 and I feel that we can rally into the highs. As such our take profit target will be at 1.2100. Our stop loss will be at 1.9250, just below support.
EUR/USD 240 min Chart - EUR/USD is Bullish
Can the Euro Bull Run Continue?
Over the holiday period the US dollar certainly didn’t have any time off. We’ve seen a sharp move lower, ever since US President Donald Trump passed his tax cuts. It was a matter of buy the rumor sell the fact for the US dollar, as a significant portion of the gains had been priced in.
That has seen the EUR/USD along with most of the majors rally sharply. We are now back testing the most recent highs at 1.2100.
This week the Euro will face a test with some top-tier data coming out. We have the ECB meeting minutes will will give us an insight into the thinking from the last meeting. Of recent times we haven’t seen any large moves in the Euro as a result. For the most part there has been little change to monetary policy and again this release might not move markets all that much.
CPI out of the US will be an important indicator for the US economy. Recently there has been doubt from the Federal Reserve over whether the US can regain its 2% inflation.target. If we get a poor print here then I would expect a big run higher in the EUR/USD.
Technical Analysis - The Key Levels
The EUR/USD has tried and failed at 1.2100 on multiple occasions. In fact we saw a big fall from this level as the US dollar gained steam on the back of US tax reform. Now things have turned around and we are targeting a break of this level. If we can break 1.2100 then the next major upside target might just be 1.2500.
EUR/USD - Key Levels
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