EUR/USD continues to rise sharply after the recent Breakout of the high Quality Pennant chart pattern identified by Autochartist on the daily charts. Autochartist rates the overall Quality of this Pennant at the 9 bar level as a result of the maximum Initial Trend (10 bars), significant Uniformity (8 bars) and higher Clarity (9 bars). The completion of this Pennant continues the preceding upward price impulse (its strength is reflected by the high Initial Trend value) from the support area close to the major round price level 1.2000, which previously reversed the pair sharply up in the middle of 2010 (as is shown on the second chart below). The strength of this Breakout is rated at the maximum 10 bar level – which heightens the chances that this currency pair will continue to rise toward the Forecast Price 1.3264.
The EUR/USD chart below shows the previous price action close to the major support level 1.2000:
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