The EURUSD continued to maintain its bullish momentum in the past days. Now the pressure will be on the key resistance – broken support – 1.3370 – Feb 07, 2013, low. The EURUSD will have to hold above the 1.3370 levels on a daily closing basis to push the market for further upside gains If seen It will target the 1.3485 levels. A breach will turn the focus to the 1.3577/1.3600 levels.
Alternatively, a failure to hold above the 1.3370 levels could mean a return to the 1.3177 levels. If 1.3177 fails. Expect the pair to weaken further towards the 1.3060 levels. In all. As long as 1.3060 holds. The pair is likely to return to its upside bias where a higher leg above 1.3370 is suggested. Losing 1.3060 levels would weaken the bullish momentum in the medium term.
Considerations: A daily close below 1.3060 would weaken the bullish momentum in the medium term.
Recommendations: Buy EURUSD into weakness after rejection from 1.3060/1.3177 with a target towards 1.3370 and 1.3485 as a second target. Or buy after consolidation above 1.3370 with a target towards 1.3485 and 1.3600 as a second target …