A Bullish EUR/USD continues to be the real story of forex markets for me. When the USD was driving higher it looked like the Euro might never see a new high again. But in forex, things change fast.

Now the EUR/USD is looking very much bullish, and we are at a very critical week.

The ECB rate decision is due out this week and while there is a strong chance of no change in rates, QE is on the agenda.

The most recent push higher has a lot to do with QE winding down. There’s little doubt the QE program hasn’t achieved much but unwinding it will see more strength come back into the Euro.

Key Support and Resistance Levels

With that in mind, I’m still looking for a move higher to the 1.2500 level. That’s my upside target for now. We are consolidating between 1.2200-1.2300 and I feel this is ripe for an upside breakout.