EUR/USD stays on the more bullish course for now

<p>One of the key triggers for the dollar rout last week was a break higher in EUR/USD to its highest levels since early last year. And that culminated in a break above 1.1200 as well as a hold above the 200-week moving average (blue line) in the pair:</p><p>That points to a strong bullish conviction as the dollar falters, with the euro also benefiting from the still more hawkish ECB at the moment.</p><p>From a technical perspective, there is good reason to expect further gains in EUR/USD so long as price momentum holds above 1.1200 as well as the 200-week moving average highlighted above.</p><p>The next plausible target may be the January 2022 highs around 1.1482-94 next but a lot will also depend on dollar sentiment this week before we get to the Fed next week.</p><p>In that lieu, US retail sales tomorrow will be the next potential trigger. And for now, buyers will keep the faith in hoping for a catalyst to work with in order to extend the upside leg from last week.</p>

This article was written by Justin Low at www.forexlive.com.