Last week ended quite unexpectedly, as bulls managed to set new long-term highs. The beginning of the week was not very promising. The price was closed under the 1.3130 resistance and could not break it for two days. The sudden comeback to long positions came on Thursday with small help from Mario Draghi, ECB president. Trading on EUR/USD was driven mainly by fundamentals, after the ECB conference the price did not really respect any minor or not even major S/R levels.
Friday started with a small rectangular formation between 1.3250 and 1.3280. Bulls took advantage of this formation and managed to set new highs with an aggressive upswing. Last week’s candlestick gives strong long-term buy signals. The close price of this candle is above the upper wicks of the last three candles and that should be appreciated by position traders buying euros.
EUR/USD" title="EUR/USD" width="612" height="349">
1.3280/90 will be the most active support from now on, where bulls will try to start a new upswing, using the previous week’s tops as a strong supply level.
The new week started with setting even higher highs just slightly above the psychological barrier on 1.34. The first attempt to hold the price above that level was unsuccessful but we can assume that it was not the last try. Probably we will have a chance to see it this week. There is also a small bullish gap and there is a high probability that it will be closed, even today. As long as the price stays above the 1.3290 support, traders should consider opening mostly long positions on this pair.