The EURUSD continued its bullish momentum, printed support at 1.3295 levels, broke above 1.3832 levels.Now focus will be on the 1.3870 levels (Oct 2011 high).
The EURUSD will have to hold above the 1.3870 levels on a monthly closing basis to push the market for further upside gains, If seen, It will target the 1.4866 levels (Sept 2008 high). a halt is suggested, but sustained trading above this level would open 1.6000 levels next.(note that 1.4866 capped the pair twice in 2009 & 2011).
Alternatively; a failure to hold above the 1.3870 levels could mean a return to the 1.3295 levels, a halt is strongly suggested, but If 1.3295 fails, focus will be on the 1.3104 levels, If this level also fails, expect the market to weaken further towards 1.2754 levels.
Overall, the EURUSD will remain biased to the upside, with risk towards 1.3870 and possible above as long as 1.2754 holds.
Note that stability above 1.3711 on a monthly basis will build pressure on the 1.3870 levels, stability below 1.3711 should weaken the current bullish run.
Long-term trend status :
Above 1.3870: Bullish
Below 1.3870: Neutral
Below 1.2754: bearish
Support and resistance (Long-term ) : 1.2042 , 1.2754 (main) , 1.3104 , 1.3295 , 1.3870 (main), 1.4866 , 1.6035
