Forex Analysis: EUR/USD Hits Resistance and New 8-Month High

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EUR/USD Daily Chart

EUR/USD (daily chart) has continued its steep advance of the past week and a half to hit key resistance around the 1.3300 region. In the process, the pair has just established a new 8-month high. This occurs within a bullish trend that extends back to the July 1.2040 low. It also occurs after price action broke out late last week above an important resistance trend line extending back to the mid-September 1.3170 high. By breaking out above that resistance line as well as the 1.3170 level, price confirmed a continuation of the entrenched bullish trend. Having just reached 1.3300 resistance, price has displayed an accelerated bullishness that could go on to reach for further highs. In the event of a significant breakout above 1.3300, the pair could move towards strong potential resistance around the 1.3500 price region.

James Chen, CMT
Chief Technical Strategist
FX Solutions

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About Author

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.

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