Upside risks if EURUSD tests 2013 high

George Davis, chief technical analyst at RBC Capital Market’s, has said that a close of EUR/USD above 2013’s high of 1.3829, a level that coincides with the 61.8% Fibonacci retracement of the  2011-12 fall at 1.3835, opens the way for a move to the October 2011 high at 1.4245. Davis stresses that although some studies are already overbought, support at 1.3664 and 1.3541 is expected to attract buying interest once again. A close below the channel base at 1.3453 is required to nullify our bullish stance, he concludes.