After bringing its head past the 1.2500 major psychological area a couple of days ago, the EUR/USD has never looked back. The common currency has been climbing the charts like nobody’s business. How far will the pair go?
The EU summit that took place over the weekend may have brought some hope in the market concerning the euro zone crisis. And, it seems investors will waste no time in selling the high-yielding currencies in favor of the United States dollar. In the coming week, traders will be keen on any follow-up announcement concerning implementing the decisions of the summit.
Technical analysis on the EUR/USD reveals it has convincingly broken past the 1.2500 level. If the bulls maintain their control on the pair, they may encounter an immediate resistance at 1.2700. On the other hand, if bears gather enough strength to start controlling the pair, they may encounter an immediate resistance at 1.2500.
EUR/USD is in an uptrend. Therefore, traders who were long in the pair should continue holding on to their positions until the next resistance level. However, they should be cautious of any price