Euro roars higher after ECB decision.


The latest ECB meeting wasn't as dovish as expected, and the central bank actually said that the EURUSD pair near 1.20 is not a problem for Europe.

Therefore, the euro was bid, and the pair was up nearly 1% during the US session, trading near 1.19.

It looks like the pair managed to defend the short-term uptrend line since August lows, which could be another bullish signal. As long as the single currency remains above this trend line, the medium-term target still seems bullish. 

Bulls are now trying to push the euro above the previous highs of 1.19. It appears they will be successful, and the next target for this rally will be at the current cycle highs of 1.20.

Alternatively, if the rally exhausts and the pair will start declining, the intraday support is near 1.1850, and the major support could be at the trend line again, which is at the 1.18 region. 

Since the Fed is more aggressive than the ECB in money printing, the long-term uptrend is expected to continue, and the EURUSD pair might create another leg higher, targeting 1.25 till the end of the autumn. 
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