By: Colin Jessup
The EUR/USD has finally broken through the weekly resistance zone of 1.3233 with a close above at 1.3259, just north of the zone. This was key for the EURO's advance as this level has been hindering the Bulls process , and might still continue to as there is significant traffic to the left on a daily chart. There will be heavy resistance again at 1.3405 with levels such as 1.3280 and 1.3350 providing intra-day resistance on the way up. Breaking above 1.3400 could signal a run up to 1.3650 or higher, but this will most likely take several days, if it happens at all right now. The RSI is approaching the 70 level, which is an indication that we are approaching overbought territory, but we have a way to go before we get there. To the downside, there will obviously be support at the previous resistance level of 1.3233, but below that support is strong with the last 8 daily candles all closing between 1.3075 and 1.3230. The Euro has a tough road ahead in either direction, but for now I remain Bullish on this pair. If price reverses, it will take a close below 1.2900 before I would consider this pair bearish again, speaking from a daily time frame.
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