EUR/USD Extends Upside Momentum To Test 1.3415

EUR/USD (daily chart as of August 8, 2013) has been trading in a narrowing range between two trend lines for about nine months since November 13, 2012. The possible range breakout would be a significant directional movement for the pair. On August 2, price once again found support at the daily EMA 20. Last time was on July 18 with price turning up right from above the EMA 20. The daily MACD is very bullish with both the MACD line and signal line turning up to form a bullish crossover, and the daily RSI is rising well above 50.

As long as the daily EMA 20 can hold, price should continue the upside momentum.

1^st resistance: 1.3415 (June 18 high)

2^nd resistance: 1.3520 (Feb 13 high)

3^rd resistance: 1.3600 (Feb 5 and Feb 6 high)

In the event of the daily EMA 20 breaking down, price could test the following supports.

1^st support: 1.3240 (multiple lows and highs)

2^nd support: 1.3185 (August 2 low)

3^rd support: 1.3060 (July 18 low)