EUR/USD is currently at 1.3185. It has been trading over the crucial 1.30 level during the last 5 sessions. It is has not traded that high since April.
Without a doubt the technical picture for the Euro has improved dramatically since the low of 1.20 earlier this summer when markets were rather convinced by ECB rhetoric about saving the currency became more aggressive.
As long at the pair remains above 1.31 it is clearly on bullish mode.
However, quite probable that is tests the 1.30 to 1.29 levels once again before it resumes its uptrend. Such correction would not change the technical picture. Actually such a correction might give EUR the fuel it needs in order to go significantly higher in the next wave up.
The sustainable break of the 1.32 level in the next days, if it takes place, gives us targets around 1.35 (2012 high).
An 1.35 target might sound a bit too high right now, given the uncertainty about some European countries, but keep in mind that even from a fundamental perspective most of the Euro-related news seem to have been priced in by the markets. It is no fresh news anymore that the Eurozone growth as a whole is stagnant, as well as that in the not very distant future some European countries will ask for additional financing.
The positive trend will turn to negative if Euro falls below 1.2650.
Pullbacks toward 1.29 should be bought with an appropriate stop loss.
If you are already long take some profits at current levels and keep your powder dry in order to add to your position at 1.29.