That big ol’ falling wedge the euro broke out of today is a very bullish technical set up.
Goldman sees it up to 1.3700. I think, based on the chart, 1.3800 is not out of the question, if we close above 1.3300. 1.3400 is next resistance of note, the 100. day moving average. Rallies have been able to penetrate that level from below but we have not been able to maintain levels above it for very long. That will be the key going forward, to my mind.
Given the over-stretched nature of the strong rally in recent days, supports are well below the market. 1.3260/65 is the first one worth mentioning . That is the 38.2% retracement of the rally from yesterday morning’s 1.2960 lows.
