EUR/USD Reaches New 14-Month High Above 1.3500

<p>EUR/USD (daily chart) as of January 30, 2013, has reached a new 14-month high by tentatively breaking out above the key 1.3500 resistance. This breakout […]</p>

EUR/USD (daily chart) as of January 30, 2013, has reached a new 14-month high by tentatively breaking out above the key 1.3500 resistance. This breakout and new long-term high follows a previous breakout above a bull pennant pattern around the 1.3400 price region.

Today’s tentative breakout above 1.3500 has extended further the strong bullish trend that has been in place since the July 2012 low at 1.2041. In the event of further bullish momentum off the break, the price could move towards key potential resistance to the upside around the 1.3700 price region, which is not only an important prior support and resistance level, but is also the approximate level at which the noted pennant’s flagpole can be extended to the upside from the pennant breakout level.

For any subsequent pullbacks or corrections within the strong bullish trend, the top of the pennant at 1.3400 could serve as strong potential support to the downside.

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