EUR/USD Forecast: bulls could take a pause heading into ECB meeting

The EUR/USD pair surpassed the key 1.15 psychological mark and surged to the highest level since May 2016 on broad based US Dollar sell-off. News report that Trump's healthcare bill has been rejected yet again by Republicans raised doubts over his administration's ability to push through pro-growth economic reforms and triggered a fresh wave of greenback selling interest. 

The pair broke through an important hurdle marked by 61.8% Fibonacci expansion level of 1.1172-1.14456 up-move, and subsequent retracement, and hence, remains poised to extend the near-term bullish trajectory. Today's economic docket features the release of German ZEW Economic Sentiment Index for July, which would be looked upon for some fresh bullish impetus. However, with short-term indicators gradually heading into near-term overbought territory, and with the ECB meeting coming up on Thursday, traders might be inclined to take some profits off the table near 1.1585 resistance area, representing 100% Fibonacci expansion level. 

Conversely, any pull-back from higher level now seems to find immediate support near the 1.1500 handle and is closely followed by horizontal support near 1.1470-65 region. Only a sustained weakness below the mentioned support levels, leading to a subsequent break below 1.1440 level, could prompt additional profit taking slide and drag the pair back below the 1.1400 round figure mark towards an important horizontal support near 1.1380-70 region.

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