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Forex Analysis: EUR/USD Advances Sharply to Six-Month High

2013-08-20-EURUSD

August 20, 2013 – EUR/USD (daily chart) has made a tentative breakout above a major resistance level around the 1.3400 price region, exceeding June’s high and establishing a six-month high in the process. This sharp advance is the latest bullish development within a substantial bullish trend that has been in place since early July, when price formed a double-bottom bounce from the 1.2750 level. The bullish trend has since broken out above successively higher resistance levels, including 1.3000, 1.3150, 1.3300, and now the key 1.3400 level. This latter breakout especially highlights the overall euro strength and dollar weakness that has characterized the currency markets for more than a month. If the currency pair is able to sustain the bullish momentum, strong immediate resistance resides around the 1.3500 area, with any further breakout above that targeting 1.3700 resistance to the upside, around the February high.

James Chen, CMT
Chief Technical Strategist
City Index Group

 

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James Chen

James Chen

James Chen is Chief Technical Strategist for City Index Group. He is also a Chartered Market Technician. He is the author of the books: "Essentials of Foreign Exchange Trading" (John Wiley & Sons, 2009) and "Essentials of Technical Analysis for Financial Markets" (John Wiley & Sons, 2010). Mr. Chen writes currency analysis, leads forex trading seminars and has appeared in numerous major financial media outlets, including CNBC, Bloomberg TV, Forbes, Reuters, Dow Jones, and the Associated Press.