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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