EUR/USD (daily chart) has again bumped up against important resistance around the key 1.3300 price region, a level that price has been unable to breakout above for the last 9 months. For 2 weeks since late December, price has consolidated right under this 1.3300 level, forming a flag-like pattern consolidation. This occurs within the context of both a longer-term bullish trend extending back to the July 1.2041 low, as well as a shorter-term bullish run that began three weeks ago and broke out above several key resistance levels. With price having formed the bull flag pattern under 1.3300, a breakout above this level could move towards further potential resistance to the upside around 1.3500, thereby confirming a continuation of the entrenched bullish trend. To the downside, short-term potential support resides around the 1.3170 price region, a prior support/resistance level as well as the approximate lower border of the flag pattern.
James Chen, CMT
Chief Technical Strategist
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