Looking at the daily chart of EUR/USD we can notice that the pair is in a strong rally, not only it is on its way to reach 2013 yearly highs (reached last February), but it looks that there is enough upside potential left to go beyond this level.
The combination of an ABCD pattern pointing towards highs of 1.3799 (last reached in November 2011), and the stochastic indicator showing that both stochastic lines are pointing upwards but still not in overbought territory - suggest that there is still more room to the upside.
Last but not least, simply looking at the price action since the beginning of the rally (following the temporary resolve of the debt issues) we have seen little or no correction on the pair; implying that the greenback is being dumped heavily in favour of other currencies which appear more stable to the eyes of the traders. Usually following a strong rally, by the end of the week, we should see some pull back due to profit taking but so far for today the pair consolidates a bit but the overall picture remains bullish.
The US trading session could eventually decide otherwise or confirm this upward move and give the currency pair a last push to break the key resistance found at 1.3714 and open the way to 1.3799, the completion of the ABCD pattern. If the latter scenario does not materialise the pair should find support at 1.3522.
The combination of an ABCD pattern pointing towards highs of 1.3799 (last reached in November 2011), and the stochastic indicator showing that both stochastic lines are pointing upwards but still not in overbought territory - suggest that there is still more room to the upside.
Last but not least, simply looking at the price action since the beginning of the rally (following the temporary resolve of the debt issues) we have seen little or no correction on the pair; implying that the greenback is being dumped heavily in favour of other currencies which appear more stable to the eyes of the traders. Usually following a strong rally, by the end of the week, we should see some pull back due to profit taking but so far for today the pair consolidates a bit but the overall picture remains bullish.
The US trading session could eventually decide otherwise or confirm this upward move and give the currency pair a last push to break the key resistance found at 1.3714 and open the way to 1.3799, the completion of the ABCD pattern. If the latter scenario does not materialise the pair should find support at 1.3522.
