August 9, 2013 – EUR/USD (daily chart) has advanced to reach major resistance around the 1.3400 price level, retesting the highs hit in mid-June and establishing a 7-week high for the currency pair. This rise to resistance continues the bullish run that has been in place for one month since the July double-bottom low around 1.2750. In the process of this bullish advance, the pair has also broken out above key 1.3300 resistance and the upper border of a large triangle consolidation pattern extending back to the February high around 1.3700.
This bullish price action currently places EUR/USD at a critical juncture. A breakout above 1.3400 should find immediate further resistance around 1.3500, with any additional bullish momentum limited by the noted 1.3700 resistance high. A turn back to the downside around current 1.3400 or higher resistance should bring the pair back down once again to target an initial downside price objective at the key 1.3000 support level.
James Chen, CMT
Chief Technical Strategist
City Index Group
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