The EUR/USD breaks above the 1.1800 level

The Euro versus the Dollar has reached levels that it has not visited since January 2015 and breaks above the 1.1800 level. The probabilities of the European Central Bank changing its monetary policy and starts to raise its interest rates are getting higher every day. On the weekly chart of the EUR/USD we can see that the rally on the pair has been steady and accelerates even more when the price broke above the 200 week exponential moving average (EMA) around the 1.1600 level. The pair is clearly over-extended to the upside, but it may continue rallying. If the pair keeps rising, its next resistance level could be the 1.2000 level, due to the fact that the zone is a very important round number area, but the 1.1900 level could also act as resistance. In case of a bearish pullback, the 1.1600 level where we can find the 200 week EMA may act as a support.