EUR/USD advances to approach long-term highs

<p>EUR/USD (daily chart) has closely approached its two-year high of 1.3965 that was established in mid-March. Tuesday’s price action pushed the currency pair up to […]</p>

EUR/USD (daily chart) has closely approached its two-year high of 1.3965 that was established in mid-March. Tuesday’s price action pushed the currency pair up to a high of 1.3950, just 15 points short of the long-term high, before pulling back slightly. This advance occurs within the context of a 10-month bullish trend extending back to the July 2013 double-bottom low around 1.2750. From a broader perspective, this trend extends even further back to a year earlier in July 2012.

With the currency pair trading well above both its 50-day and 200-day moving averages, which are in clear separation and continuing to rise, the outlook for EUR/USD remains bullish in line with the current uptrend. Strong downside support on any pullback in the trend continues to reside around the key 1.3700 level. If the pair is able to break above the noted long-term high resistance around 1.3965, the primary upside target remains nearby at the 1.4000 psychological level. Any break above 1.4000 would confirm a continuation of the entrenched bullish trend, with a major upside target at 1.4250.

 

 

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