The pair maintains positive dynamics and a tendency to further growth, which is facilitated by two strong fundamental factors - the stimulating policy of the Fed, as well as the recently adopted by the EU leaders a program to support the European economy in the form of a package of expenditures for the economic recovery of the bloc of 1.8 trillion euros.
European assets look more attractive compared to US assets, and the European economy is recovering at a faster pace.
At the beginning of the European session on Thursday, the pair rose to a new 26-month local high of 1.1915, and the upward dynamics and growth of EUR / USD are likely to continue.
The pair is traded in the zone above the long-term and key support level of 1.1385 (ЕМА200 on the weekly chart). The tendency to further growth may lead EUR / USD to resistance levels of 1.2075 (ЕМА200 on the monthly chart), 1.2180 (Fibonacci level 50% of the upward correction in the wave of the pair's decline from 1.3870, which began in May 2014).
In the alternative scenario and after the breakdown of the support levels 1.1385, 1.1285 (ЕМА144 on the weekly chart and Fibonacci level 23.6%), the pair will continue to decline towards the support level 1.1190 (ЕМА200 on the daily chart), and a return to the zone below this support level will mark the resumption of bearish trend.
A breakdown of the short-term support level of 1.1765 (ЕМА200 on the 1-hour chart) may become a signal for the implementation of this scenario.
Trading Recommendations
Sell Stop 1.1760. Stop-Loss 1.1920. Take-Profit 1.1700, 1.1640, 1.1550, 1.1520, 1.1420, 1.1385, 1.1285, 1.1190
Buy by market. Stop-Loss 1.1760. Take-Profit 1.1915, 1.1970, 1.2075, 1.2180