Euro vs US Dollar Rises to Trend Line Resistance

<p>EUR/USD (daily chart) as of December 13, 2012, has once again risen to reach a key downtrend resistance line extending back to the mid-September 1.3170 […]</p>

EUR/USD (daily chart) as of December 13, 2012, has once again risen to reach a key downtrend resistance line extending back to the mid-September 1.3170 high. This trend line has already been tested twice since that high, once in mid-October and the latest time just last week in early December. This bullish move up to resistance has occurred within the context of an overall bullish trend that extends back to the July 1.2040 low, with the 100-day moving average also sloping to the upside. In the event of a breakout above this trend line resistance, price could move towards a potential bullish trend continuation, with further potential resistance residing around the 1.3280-1.3300 and then 1.3480-1.3500 price regions. If the trend line resistance is respected with a subsequent move to the downside, the 1.2820 area could continue to serve as potential downside support within the bullish trend.

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