The EUR/USD pair rose since Wednesday 19th, 500 points, making a high of 639 points yesterday, formerly seen on January 2014.
The strong direction has been supported by both technical and fundamental analysis.
Fundamental point of view:
A potential recession in china sparked fears, which led to a major sell-off in equity markets. All major currencies rose versus the US dollar.
On Friday, we got a positive Manufacturing report in Germany, and the bailout plan for Greece, which was approved by the Eurozone officials during last week.
All factors led to a correction of major currencies versus the US dollar.
Technical point of view:
After a strong run of more than 500 pips, we are clearly on an up movement. By looking on a daily time frame, the price is above 20 MA and so as the 10 MA, RSI indicator is way above over bought level, which can signal to wait before entering up again.
After 4 consecutive candles and more than 600 points, we will wait for the price to drop below 1.15 before buying again.