The EUR/USD currency pair continues to defy the fundamental gravity that has seen the pair embark on a 700-pip rampage over the past few weeks. The pair is not supposed to be doing this. From a macroeconomic standpoint, the pair should have been unleashing such fury in the opposite direction if macroeconomics was the only fueling force, but we have seen that macroeconomics is not the exact reason for the pair's viscous rise above 1.2500. Granted that the Eurozone has done nicely as a result of a few standout countries, such as Germany and France who posted strong economic growth recently. In fact, the US economy has also registered strong economic growth also.
Then, if macroeconomic factors are not the reason why the EUR/USD pair has risen to such high levels since 2015, then what is? The answer to this simple question is three upper case letters "ECB." The ECB is the abbreviation used for the European Central Bank. The ECB policy on the Euro has not changed since the last public speech by the European Central Bank's President, Draghi.
What this means is that we can expect to see the EUR/USD pair rise toward the upper 1.3000s and very possibly 1.4200s. We don't have a crystal ball, but the way the pair is moving, anything is possible.
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