November 27, 2013 – EUR/USD (daily chart) has continued to grind its way higher within a short-term bullish trend that has lasted for the past three weeks. This bullish run was initiated after the pair plunged from close to a two-year high of 1.3830 in late October down to a low around 1.3300 support (also a key 50% Fibonacci retracement of the prior bullish trend) in early November before rebounding. This rebound has thus far recovered well more than half of the noted plunge and appears poised for further potential recovery.
While still underneath the uptrend line extending back to the July 1.2750-area low, the pair has tentatively moved above its 50-day moving average, a bullish indication. The key upside objective currently resides around the 1.3700 resistance level, with any further upside potentially seeking a re-test of the noted 1.3830 long-term high. The key downside support level to watch currently resides around the 1.3400 price level.
James Chen, CMT
Chief Technical Strategist
City Index Group
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