By: Mike Kulej
The Euro has been advancing against the US Dollar since the start of the year. During this time, the EUR-USD pair rallied from 1.2876 to the recent high of 1.4520, overcoming constantly re-occurring worries about indebtedness of some countries within the European Union.
Recently, the ECB decision to raise interest certainly helped this pair maintain the upward momentum and pushed it above the very important resistance 1.4270. Now the expectations for more hikes are driving the rally.
The angle of this bullish run is very steep and certainly unsustainable for a prolonged time. We can see how close the price is to the trendline, which has been tested on many occasions, but held every time. With each reaction, this support becomes more important to the general “health” of this rally.
Some of the technical indicators suggest oversold conditions, which is typical after such a long trend. However, for as long as the trendline remains intact, the EUR-USD remains bullish. It is difficult to say how far the price can go without a correction, but the next important resistance is at 1.5140. This suggests that the present trend might continue for some time, with the trendline serving as reversal warning instrument.