Euro Testing 1.3900

Commentary: The last two days comments on the EURUSD have started out with “there is no reason to change the outlook at this point for a new high (above 1.3852)?”. Still, we had favored a bigger pullback in hopes that those on the sidelines could get in at a favorable reward/risk ratio. However, the EURUSD continues to rally and is approaching the 1.3900 figure.

Measured resistance is at 1.3910 (100% extension of 1.3360-1.3719/1.3551). There is potential for a rally to the 161.8% at 1.4132 as well, but likely next week. See our special technical report on the EURUSD from Friday at EURUSD 1.40 for more analysis.

Strategy: Remain bullish, move risk to 1.3824 (from 1.3663), no target?we?ll keep moving up the stop until we are stopped out