Will the Euro Continue Rallying in September?

The Euro is definitely having its best year for at least 5 years of trading history. The single European currency has significantly increased its worth against the US dollar going from a low of 1.03 to a high of 1.20 in exactly 8 months, starting from January until August.

September brings us with the expectations that with the summer closing in, market participants will dive again into trading and create new opportunities. This means that we can certainly expect higher volatility. What we cannot be sure, however, is will the Euro keep going.

The latest rally came without any serious corrections, implying that the move will still continue to the upside. What we can tell for sure is that the pair is well above the 200SMA and is holding up very well above the upper trendline resistance-turned-support.

Chart: EUR/USD D1