EUR/USD Breaks Out To 3-Month High!


 The US dollar continued its decline at the close of trade last week after moving flat the previous few days.

The euro was among the currencies that managed to take advantage of the situation to strengthen to a 3-month high against the US dollar.

With the economic data of the United States (US) published and digested by investors, the majority sees the monetary policy of the Federal Reserve (Fed) heading towards an easing phase.

The focus will be on the FOMC meeting minutes report this week which will be published along with some important economic data.

Examining the price chart of the EUR/USD currency pair, the price managed to climb higher in the last session of the week to break through the horizontal zone of the previous few days' movement.

The latest high reached at the close of last week was around 1.09100 with the price remaining above the Moving Average 50 (MA50) support level on the 1-hour time frame on the chart for a bullish signal.

Slow price movements continue the opening of trading in the Asian session this morning (Monday) but prices are seen to continue the upward trend.

The expectation for the continued higher rise is to head towards the 1.10000 level which is expected to display an interesting reaction around that.

The last time the price traded at that level was in August trading before the price continued to fall until October.

However, be alert if there is a retracement of the price below the MA50 support level and it can be an early signal of a trend reversal.

The initial drop in price is seen to test the 1.08000 level and if it breaks through lower, the price target is at 1.07000.