The EURUSD pair has moved to its highest level since December 2014, reaching 1.2296 during Monday’s European trading session. The euro has now pulled back towards the 1.2260 level, after the decline in the U.S dollar index quickly reached extreme oversold levels. Trading conditions in the foreign exchange are increasingly volatile, with exaggerated intraday price-movement, as financial markets in the United States are away on holiday, celebrating Martin Luther King Day.
The EURUSD buyers are firmly in control while price-action trades above the 1.2250 level, further upside towards 1.2300 and 1.2345 remains possible.
Should price-action on the EURUSD pair move below the 1.2250 level, technical selling towards the 1.2200 region now seems likely.
