Well, it took two days of hovering around the resistance at 1.2140 but on the third day of last week EUR/USD managed to push and close above it. It was then a quick move up to the psychological level of 1.2200, which the pair broke with relative ease. The currency pair closed the week out above this psychological level so the move towards the next zone of resistance at 1.2410 continues to play out. The pair has now reached heights not seen since March 2018, firmly situated well above any resisting descending trend lines.
For the upcoming week we will still be looking for bearish pullbacks, towards the supporting 4H and daily ascending trend lines. The daily ascending trend line would also fall with the support level of 1.2140. We see no reason why EUR/USD could not reach 1.2410 over the next couple of weeks as there is now very little in the way of resistance for the pair. Fundamentally, weakness in the US dollar is likely to persist as any fiscal stimulus package that is agreed upon in the US is often seen as weak for the US dollar, therefore strength in the EUR/USD is likely to continue. The only other thing to affect the pair may be news on a Brexit deal.
For the upcoming week we will still be looking for bearish pullbacks, towards the supporting 4H and daily ascending trend lines. The daily ascending trend line would also fall with the support level of 1.2140. We see no reason why EUR/USD could not reach 1.2410 over the next couple of weeks as there is now very little in the way of resistance for the pair. Fundamentally, weakness in the US dollar is likely to persist as any fiscal stimulus package that is agreed upon in the US is often seen as weak for the US dollar, therefore strength in the EUR/USD is likely to continue. The only other thing to affect the pair may be news on a Brexit deal.