Contrary to expectations, the Euro managed to maintain its strong upward momentum during the previous session and climb to a three-year high of 1.2550 by Friday morning. This marks a 85 pip advance against the US Dollar in two days and 280 pip rise from the beginning of this trading week.
It is expected that the current bullish sentiment could continue early next week, as well. However, the high positioning of technical indicators suggests that some bearish correction should occur in order for the pair to build up the necessary momentum and overcome the aforementioned high.
The nearest resistance is set by the weekly R1 and the 61.8% Fibo retracement (2014 high of 1.40 and 2016 low of 1.04) near the 1.26 mark. Meanwhile, daily low should be the 200-hour SMA at 1.2350.
