New highs for Euro look reachable as indicators show tough week for the dollar

Euro zone inflation remained at a record high in February, the European Union's statistics office estimated on Monday, ahead of the European Central Bank's rate meeting and new growth and inflation forecasts on Thursday.

Fundamental
Consumer prices in the 15 countries using the euro rose 3.2 percent year-on-year last month, the same as in January and in line with market consensus.
The bank's fight against inflation is likely to be made easier by a strong euro, which hit record highs against the U.S. dollar at above $1.52 on Friday, and against the British pound - the two main trading currencies for the euro zone.

Technical
The currency’s rise against the dollar last week through so-called resistance levels between “$1.4955 to $1.4965” and above the $1.50 ``psychological'' level set up a ``target'' from $1.5620 to $1.57 in a research report dated yesterday.
The Euro may extend its rally to as high as $1.57, based on charts that predict price movements. The Market still is in an uptrend; according to many indicators like RSI, which is giving us a clear bullish signal, MACD breaks the equilibrium level and is pointing upwards, Bollinger gives us a bullish signal by closing the candle above the middle band.

EUR/USD (Daily Chart)
The primary tendency remains bullish, starting from 11 February 2008

EUR/USD (4 Hour Chart)
The pair continued the uptrend and reached 1.5240

EUR/USD (Hourly Chart)
The Minor trend shows us double top formation.

Resistance
1.5295
1.5235

Support
1.5075
1.5145