October 2, 2013 – EUR/USD (daily chart) has advanced to establish close to an 8-month high after having just broken out above a bullish pennant consolidation pattern that had been in place for the past two weeks. This breakout tentatively confirms a continuation of the short-term bullish trend that began from the July low around 1.2750 and then pulled back to the 50% Fibonacci level in early September before advancing to continue the uptrend. Currently, the new high brings the pair close to approaching its major resistance target to the upside at 1.3700, which was last hit back in early February. Any further breakout above 1.3700 should put the pair on track to reaching towards the key 1.4000 psychological level. Major downside support on any pullback within the prevailing uptrend currently resides around the 1.3450 price region.
James Chen, CMT
Chief Technical Strategist
City Index Group
Forex trading involves a substantial risk of loss and is not suitable for all investors. This information is being provided only for general market commentary and does not constitute investment trading advice. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision.
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