FXstreet.com (Barcelona) - EUR/USD continues crawling upwards after a massive rally backed by the Fed's plan to buy government bonds and debt securities. The Euro rallied yesterday to a new two-months high at 1.3740, and has launched another attempt today to break above that level, although resistance remains intact.

Kathy Lien, Director of Currency Research, sees the Euro rising even higher: On December 16th, when the Fed first brought up the prospect of buying U.S. Treasuries at their FOMC meeting, the EUR/USD rose from a low of 1.3629 to a high of 1.4719, an 8 percent move. Now that the Fed is actually following through with buying longer term Treasuries, the impact on the EUR/USD should be the same if not greater.

A similar move, according to Lien, would take the Euro to levels above 1.40 in the next days: Therefore an 8 percent move in the EUR/USD post FOMC would take the currency pair to at least 1.40 from Wednesday's low, which is my target over the next few trading days.