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2014-03-13-EURUSD

March 13, 2014 – EUR/USD (daily chart) has advanced further in early trading on Thursday to break out above its previous two-year, four-month high of 1.3914 that was established just late last week. A high of 1.3965 was reached on Thursday, as of this writing. After the breakout, the currency pair has come close to approaching its previously-stated upside target at the 1.4000 psychological level. Having reached above its prior high, EUR/USD has well surpassed the highs of 2013 and confirmed a continuation of the bullish trend that has been in place since July’s double-bottom low near 1.2750.

Most recently, since the pullback slightly below 1.3500 support in early February, the pair has been rising steadily in a stair-step manner, and appears poised in the short-term to continue this upward trajectory. Bullish momentum above the noted 1.4000 upside objective could place the pair on target to reach towards further major resistance around the 1.4250 level. Before that level is potentially reached, additional pullback moves should be expected. Major downside support on any imminent pullback currently resides around the key 1.3700 level.

James Chen, CMT
Chief Technical Strategist
City Index Group

 

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