EUR/USD – 24/1

We are still bullish on EUR/USD (currently over 1.33) from a technical perspective. The consolidation of the last two weeks between 1.3260 and 1.34 (a new 11-month high) has worked off some of the overbought conditions. Pullbacks at the 1.3200/1.3250 region should be bought-in with an appropriate stop-loss.

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. Resistance can be found at at 1.34 (this week’s high), at 1.3484 (1 year high) and at 1.3500.

The technical picture will be damaged below 1.3150.