EUR/USD Technical Analysis - 10/23/2013

The pair EUR/USD started yesterday a powerful bullish rally.
The price has validated the upward breaks of 1.37 nad 1.3750, offering new buy signals.
The EUR/USD is back on the upper bands of its medium term bullish channel (pink lines).
A double top has been made on the major resistance at 1.38.
The upward movement is led by a bullish slant (blue line on the 1H chart).

I would advise traders to trade only Long positions (buy) as far as the price is above 1.3750.
A break of 1.38 will offer a new buy signal for an extension of the rally towards 1.3850.

In case of return below 1.3750, we will then advise to wait a breakout of 1.37 before to trade short positions (sell).

NB : traders whose trading strategy is more aggressive could trade the EUR/USD according to 1.3750 (long above ; Short below).