On the other hand, a rate increase should be good for the Euro (from a longer perspective), because the Fed has no plans to increase rates for the US dollar any time soon. This of course is the main reason for a strong Eur/Usd move for the past few weeks.
What about technical picture!? The pair is facing a powerful resistance around 1.4300/400 region with decreasing volume and divergence shown on a daily chart attached below. At the same time pair is testing trend line from 2008, so we believe that close price of this week will be very important; break and push below rising trend line will be a very bearish signal, while break and close above 2008 trend line will put even more gains in play for weeks ahead.
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