The EURUSD continued its bullish momentum last week , printed support at the 1.3706 levels , broke above the key resistance 1.3892 and took out the long term resistance line that falling from the 1.6035 levels ( 2008 high ) and the 1.4939 levels (2011 high ) . This development leaves the pair targeting the 1.4035 levels ,where a halt is likely , but break of the 1.4035 levels will call for a run to the 1.4185 levels , further out will aim the 1.4350 levels.
On the downside , minor support comes at the 1.3832 levels , as long as this level holds , the pair is very bullish and further upside couldn’t be ruled out towards / beyond the 1.4000 levels. losing the 1.3832 levels would open 1.3750, at this point strong support should be seen from the 1.3750 levels , below the 1.3750 would open main support at the 1.3706 levels.
In all , as long as support 1.3706 holds on a weekly basis , the EURUSD will remain based to the upside towards the 1.4035 levels , losing the 1.3706 levels will signal short term topping and reverse risks towards the 1.3585 ahead of the 1.3476 levels.
- In medium term outlook , as long as 1.3706 holds on a weekly basis , the pair is very bullish , below 1.3706 will turn outlook neutral and open 1.3476 levels.
- We have hidden bullish divergence on the daily chart (continuation pattern) . On the 1 hour chart , the pair is in extended bearish divergence , support at 1.3750 ( broken resistance ) . strong demand at the 1.3750 levels.