As we turn the page into February, the single currency shows no signs of stopping: EUR/USD now trades at 1.3624 after climbing above the round number of 1.36 and breaking resistance at 1.3610. As previously described, the previous consolidation seems to have been a pause to respect uptrend resistance. As time passed by, so did the uptrend resistance line and eventually the pair followed.
The next line of resistance is 1.3690, followed by 1.3790 and 1.3860. 1.3610 turns into minor support, followed by 1.3588 and 1.3550. Much more important support still sits at 1.3486. The break of this line sent the pair to 14 month highs.
It will be interesting to see if the upcoming Non-Farm Payrolls releases will move the markets. See how to trade the NFP with EUR/USD.
No apparent one-time reason can be cited for the fresh break: the upwards move by the euro is due to relief regarding the debt crisis and returning flows into the euro-zone. However, the euro-zone is still in recession, and a stronger currency certainly reduces the chances of getting out of a recession.
For more, see the EURUSD forecast.
Also the yen continues to weaken across the board in the wake of February. Here are updates on USD/JPY and EUR/JPY.Get the 5 most predictable currency pairs