EUR/USD – weekly analysis 19/1

EUR/USD (currently just over 1.33) is on a bullish mode on the daily chart.

This week EUR/USD consolidated between 1.3260 and 1.34 (new 11-month high), working off some of the overbought conditions of 2013, which was a very healthy thing to do.

The currency pair has broken the neckline of the inverse head and shoulders formation that was created during the last four months at 1.3150, giving us a target of 1.36 for the next weeks. Resistance can be found at at 1.34 (this week’s high), at 1.3484 (1 year high) and at 1.3500.

Pullbacks at the 1.3200/1.3250 region should be bought-in with an appropriate stop-loss.

The technical picture will be damaged below 1.3150.

Petros