EUR/USD reaching towards multi-year highs

<p>December 9, 2013 – EUR/USD (daily chart) has just reached and tentatively surpassed its previous resistance target at 1.3700, establishing a new 5-week high. This […]</p>

December 9, 2013 – EUR/USD (daily chart) has just reached and tentatively surpassed its previous resistance target at 1.3700, establishing a new 5-week high.

This substantial advance comes after an entire month of consistently bullish price action as the pair rose steadily from its 1.3300 support level in early November, which was the low of the last major downside correction.

Having reached and exceeded the pivotal 1.3700 prior resistance level, EUR/USD now has a clear upside resistance objective at the 1.3830-area multi-year high, which was last reached in late October.

Any further breakout above that level would confirm a bullish trend continuation, with a further upside objective at the 1.4000 level.

As the pair is currently showing substantially overbought indications, however, another pullback is potentially due.

Key downside support on this potential pullback within the current bullish trend tentatively resides around the 1.3600 level.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.