Euro vs US Dollar Sustains Bullish Trend

<p>EUR/USD (daily chart) as of January 14, 2013, has tentatively retained its bullish momentum by sustaining its breakout above the key 1.3300 resistance region. In […]</p>

EUR/USD (daily chart) as of January 14, 2013, has tentatively retained its bullish momentum by sustaining its breakout above the key 1.3300 resistance region. In the process, the pair has established a new 10-month high. This occurs within a six-month bullish trend, after price pulled back then bounced early last week off the critical 1.3000 support confluence. This confluence was a convergence of support that included the 1.3000 level, the 100-day moving average, and an uptrend support line extending back to the July 2012 1.2041 low. With the breakout above 1.3300, price has tentatively confirmed an uptrend continuation after having been unable to breakout above this level for the past several weeks. In the event of a continuation of this bullish breakout momentum, price could move towards strong potential resistance around the 1.3500 price region, which is currently also around the underside of an even steeper bullish trend line extending back to the July 2012 1.2041 low.

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.