EUR/USD: Bullish Breakout at 1.2748
EUR/USD has broken its strong resistance at 1.2748 (see also down trendline and rising wedge). The next resistances are given by the 200-day moving average and the 15 March low (1.3004). Hourly support at 1.2697.
Given the lack of base formation or sell-off, the current strength in EUR is seen as a rebound within an underlying downtrend. Given the current overbought conditions, we are looking at signs of weakness to initiate a new short EUR position.