EUR/USD Making New Highs

After breaking out yesterday above the last major high of 1.4445 within the current uptrend, price action on EUR/USD has hit its initial upside resistance target at the top of a parallel uptrend channel that the pair has been traversing since early June. In the process, this currency pair has confirmed a continuation of the current prevailing uptrend and has made a new 2009, or 8-month, high. The next key upside target resides right above 1.4700, which represents the top of the spike that occurred at the end of 2008. Any near-term breakout above that price region would reach at least an 11-month high, and could subsequently target further key resistance in the 1.4900 price region. Downside support within the context of the current uptrend continues to reside around the bottom border of the major parallel uptrend channel that has been in place since early March.

(Chart courtesy of FX Solutions’ FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)

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