Forex Trading: EUR/USD Surges Through December High
The EURUSD has taken out the December high of 13308 after being below 13000 a week ago. The new high reinforces the year long bullish pattern and shifts focus to objectives just above 13800 (Fibonacci) and 14200 (inverse head and shoulders target). The March 2012 high at 13385 could provoke a response. As for entries - I'll be looking to buy against 13245. 13320 is estimated near term support.
The EURAUD is upsetting. I was looking for a low. We get the low but never got a pullback to trigger long orders. This brings up a good point; market conditions have clearly changed in 2013 and now favor breakout strategies and stop entries. Keep this in mind moving forward. The EURAUD is lagging the EURUSD (still below the December low). In other words, price remains in a range and buying strength in a range isn't desirable. I'll continue to monitor EURAUD through Twitter @JamieSaettele.
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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Jamie is the author of Sentiment in the Forex Market.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.