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EUR/USD hangs on to gains made in wake of ECB

Mario Draghi inspired the pair to shoot through the key $1.38 level, and so far the gains appear to be holding on.

A near two-month high for EUR/USD does not necessarily signal that traders believe the worst is over for the eurozone, even if Mario Draghi thinks the currency union’s overall economy is showing signs of health.

However, for now, traders seem to content to push the currency pair higher, although dollar weakness is probably the more dynamic element at work here.

All in all, we can now see that EUR/USD is pushing through the downtrend that has capped gains since mid-2008. Assuming we can break through the $1.39 level, which was touched during a spike in late December, if there is consolidation here then it may provide an opportunity. Traders could then get on board the upward move, with a potential target of $1.40 in sight.

Spot FX EUR/USD chart

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