Euro Technical Outlook

[B]Euro / US Dollar[/B]

The EURUSD has defied expectations and broken to fresh year-to-date peaks, bucking a series of lower lows and lower highs. Our short-term bearish bias has clearly been shaken, and the next major resistance level comes at a confluence of trend-channel highs and relatively less-significant Fibonacci retracement marks. The 1.4230 mark represents the confluence of the 78.6 percent retracement of the 1.4710-1.2450 move and the top of the pair’s month-long price channel. The next significant swing-high can be found at December peaks of 1.4365 and, much further away, 1.4714. Price remains in overbought territory, but very short-term momentum favors further gains.