EUR/USD (daily chart) has lingered above support at 1.3300 for the time being, but has struggled to reach the significant 1.3500 level. Price is still entrenched within a strong uptrend extending back to the July 2012 1.2041 low, and has been rather consistent in establishing higher highs during that time. After launching off the key 1.3000 area in the beginning of the year, Monday (January 14) saw price action hit a high right around the 1.3400 area, establishing a new 10-month high in the process. But a pullback slightly below 1.3300 support occurred within the next couple of days. Friday morning saw price re-approach Monday’s high, but has subsequently stalled just below it. With the high established at 1.3400, a breakout and close above it would confirm a continuation of the entrenched bullish trend, in which case price could move towards key potential resistance at 1.3500, with further potential resistance around the 1.3700 price region.
James Chen, CMT
Chief Technical Strategist
FX Solutions
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