The EUR/USD continued to surge on Monday. The surge was caused by the US Federal Reserve signaling upcoming monetary easing while the ECB’s policy remained less stimulating during the last week’s central bank events.
Meanwhile, note that an ascending pattern can be drawn by using the low and high levels of the recent surge. It reveals that up to now the EUR/USD climb has been occurring with a certain volatility in the borders of the observable pattern.
In general, the rate is expected to reach next for the monthly pivot point at 1.1412. Afterwards, it is expected that the rate will trade sideways below this resistance until the hourly simple moving averages approach the rate from below and push the pair higher.
On the other hand, the rate could trade sideways or decline throughout Monday, as it has not support as low as 1.1350, where the lower trend line of the pattern was located at on Monday.
