EURUSD: Target Still 1.1600?

EURUSD is pushing to new four-month highs today.

It comes after the euro broke above channel resistance on July 6th and above 1.1350 last week.

If you saw Saturday’s forex forecast, you know that Friday’s close above 1.1420 was contingent on Monday’s open.

So far today, buyers haven’t disappointed.

However, as always, a daily close above 1.1420 is required to confirm the breakout.

That means a 5 pm EST close above 1.1420.

But a look at last week’s highs indicates that 1.1440 could be a factor too.

So, to play it safe, a close above 1.1420/40 is required to clear this resistance area on a daily closing basis.

I will also be using that area to add to my long position from 1.1299.

My target for that position, as I told members earlier this month, is 1.1600 based on the weekly and monthly time frames.

Notice how 1.1600 is a confluence of resistance.

It’s a key horizontal level and the top of a multi-year wedge pattern that extends from the 2008 high.

Before that, though, buyers have to deal with the 1.1500 resistance level.

But as I stated above, EURUSD bulls need to secure a daily close above 1.1420/40 to open the door to higher prices such as 1.1500 and 1.1600.

Disclaimer: I hold a EURUSD long position from 1.1299.

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