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Forex Analysis: EUR/USD Tentatively Maintains Bullish Trend

EUR/USD Daily Chart

EUR/USD (daily chart) has tentatively maintained its bullish trend by sustaining its momentum breakout above the important 1.3300 prior resistance level. In the process, EUR/USD has hit a new 10-month high. This occurs within a 6-month bullish trend, after price pulled back then bounced early last week off the key 1.3000 support confluence. This confluence was a convergence of support that included the 1.3000 level, the 100-day moving average, and an uptrend support line extending back to the July 2012 1.2041 low. With the breakout above 1.3300, price has tentatively confirmed a bullish trend continuation after having been unable to break out above this level for the past several weeks. In the event of a continuation of this bullish breakout momentum, price could move towards strong potential resistance around the 1.3500 price region, which is currently also around the underside of an even steeper bullish trend line extending back to the July 2012 1.2041 low.

James Chen, CMT
Chief Technical Strategist
FX Solutions

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James Chen

James Chen

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.