EUR-USD: Eyeing 1.5000 and Beyond

EUR-USD: Risk continues to build to the upside after the pair halted its corrective declines initiated from the 1.5062 level.

The current price development is coming on the back of a turn ahead of its rising long-term trend line drawn off the 1.2456 level. The pair has regained half of its declines from 1.5062 to 1.4626, suggesting that a follow-through higher could come.

This view comes with one caveat: The pair's present shaky hold above the 1.4844 level must be solidified to validate our upside scenario and bring further gains toward the psychological level at 1.5000 and then the year-to-date high at 1.5062.

Click here and scroll down to view a chart showing the EUR-USD.

A firm break above there will resume the pair's medium-term uptrend and open the door for additional gains towards the 1.5082, the Aug. 10 high, and then 1.5283, its May 4 low.

Should the pair fail to hold above 1.4844, downside weakness could develop toward the 1.4670 level, where the medium-term rising trend line currently resides. We envisage a cap at this level that would push the pair back up. Further down, support extends toward the Oct. 2 low at 1.4479. A snap below there would bring the Aug. 5 level of 1.4446 into focus.

Overall, the EUR-USD appears set to resume its medium-term uptrend, but it must clear the 1.5000 and 1.5062 levels to do so.

> > Bull or Bear? Vote in Our Poll