The Euro has continued to move higher at the start of the week and now looks likely to test multi-month highs. Having already spiked as high as 1.3915 last week on the back of better than expected Non Farms payrolls figures we would expect further bullish moves to test this level again this week.
Price this week so far has held above support at 1.3855 on a daily close which adds credulity to the current bullish scenario. Key support comes in at 1.3809.
The technical picture is supportive of further gains with the price remaining above key short term 5, 10 and 20 day moving averages. RSI is rising but is yet to show the pair as being overbought.
News up for release this week
12/03/14 – French Financial Non-Farm Payrolls, G7 Meetings
13/03/14 – French CPI (m/m), ECB Monthly Bulletin
14/03/14 – German Final CPI (m/m), Quarterly employment change