Since then, it has been undermined mainly by the EU problems, and the rate difference also helped the USD over the EUR.
However, now it looks like this long-term trend could be finally over as the EURUSD pair has broken above the bearish trend line from 2008 highs. That means the long-term downtrend could be over, and a possible retracement higher might occur soon.
From the medium-term perspective, the key resistance could be seen at 2018 highs of 1.25, but on the way there, the euro has to clear another psychological level of 1.20, where this year's highs are located.
That is our preferred scenario as fundamentals point to further weakness in the USD. Long-term predictions are impossible to make, but the EURUSD pair might rise toward the 1.35-1.40 zone in the next two years, according to the technical analysis.
Alternatively, if the euro drops back below the trend line, currently at 1.1500, the bearish trend might be renewed, targeting post-lockdown lows in the 1.08 region.
