EUR/USD rebounds to target new highs
James Chen April 16, 2014 7:40 PM
<p>EUR/USD (daily chart shown below) has just rebounded off its 50-day moving average as it seeks potentially higher highs within a continuing bullish trend. This […]</p>
EUR/USD (daily chart shown below) has just rebounded off its 50-day moving average as it seeks potentially higher highs within a continuing bullish trend.
This uptrend extends back more than nine months from July’s 1.2750-area double-bottom low.
The current rebound off the moving average comes after a major bounce off the key 1.3700 area that occurred early last week. In turn, that bounce occurred after the currency pair made a 2% pullback from its multi-year high of 1.3965 that was established about a month ago in mid-March.
Major downside support continues to reside around the noted 1.3700-area. In the event of further upside momentum off the current rebound, the key level to watch remains around the noted 1.3965 high.
On any breakout above that major resistance level, an uptrend continuation will have been confirmed with further upside targets around the 1.4000 and 1.4250 resistance levels.
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