EUR/USD (daily chart) has once again advanced to hit a key bearish resistance trend line extending back to the mid-September 1.3170 high. This trend line has already been tested two times since that high, once in mid-October and the latest time just last week in early December. This bullish move up to resistance has occurred within an overall bullish trend that extends back to the July 1.2040 low, with the 100-day moving average also sloping up. In the event of a breakout above this trend line resistance, price could move towards a potential bullish trend continuation, with further potential resistance areas residing around the 1.3280-1.3300 and then 1.3480-1.3500 price regions. If the trend line resistance is respected with a subsequent move to the downside, the 1.2820 area could continue to serve as potential downside support within the bullish trend.
James Chen, CMT
Chief Technical Strategist
FX Solutions
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