EUR/USD: Grinding Higher
EUR/USD has broken the key resistance at 1.3711 (01/02/2013 high), opening the way for a move towards the key resistances given by the long-term declining trendline (around 1.3968) and 1.4000 (psychological threshold). Supports can be found at 1.3742 (23/10/2013 low) and 1.3651 (21/10/2013 low). An initial resistance lies at 1.3832.
The medium-term bullish momentum remains strong as can be seen by the fresh multi-month highs. However, the increasing overbought conditions and the key resistance area given by the long-term declining trendline (around 1.3970) and the psychological threshold at 1.4000 should put a cap to the medium-term upside potential.