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Technical Analysis Outlook 1.25.13

K. Tanner

EURUSD: This week I’ve said: “the RSI downtrend that was broken last week was the clue for further strength. Accordingly, I maintain that ‘focus is on buying dips.’ It now appears that a Bull Flag has formed on the daily chart, with a break above 1.3400/10 signaling a move towards 1.3485.” The Bull Flag has broken out to the topside today, with a measured move pointing towards 1.3635. Support comes in at 1.3380/85 (mid-March swing high, Bull Flag resistance), 1.3280/3310, and 1.3120/45. Resistance is 1.3485 (late-February swing high), 1.3545/50, and 1.3635.