EURUSD Technical Analysis - 05/06/2013

The pair EUR/USD has started yesterday a bullish rally and has validated the breakout of 1.3150, giving us a new buy signal.
The price is now moving above the center lines of its medium term bullish channel (pink lines).
On the shorter term, the price is now included into a bullish channel (new blue lines on the 1H chart) and is currently moving on the upper band.

The course is going to test the resistance at 1.32 -> level of the double top formed on April 16th and 17th 2013.

I advise traders to trade only long positions as far as 1.3150 is support.
The break of 1.32 will offer a new buy signal for an extension of the rally towards 1.3250.

In case of return below 1.3150, i would then advise traders to wait for a breakout of 1.31 before trading long positions.

NB: traders whose trading strategy is more aggressive could trade the pair according the the key level at 1.3150:
- Trade only long positions above 1.3150.
- Trade only short positions below 1.3150