The sharp price moves in EUR/USD in recent weeks are extraordinary for such a liquid currency pair.  We argue that despite the sharp correction higher, the downtrend in EUR/USD remains intact. 

 That said, our house view that the Fed may not be ready to hike interest rates until the end of the year provides a strong argument in favour of a moderation in the pace of any further USD gains in the coming months.

The material has been provided by InstaForex Company –