Thanks very much to a weak USD, the EUR/USD has reached potential breakout mode. Every level that has stepped up has been quickly brushed aside. And with that in mind, it appears likely that we will be testing the most recent highs.

It was in September that the EUR/USD last saw, 1.2090 or thereabouts. We didn’t quite crack 1.2100 at the time, but the momentum is bullish. And probably more bullish than last time around.

I think we will certainly be looking for a test of 1.2100 in the coming sessions and there is every chance of a breakout now.

Key Resistance

We couldn’t break it then and we might have a tough time now. As it stands the current highs of this run are at 1.2082. The September highs stood at 1.2092. So we are closing in on them fast.

The interesting thing is that above 1.2100, there is very little in the way of resistance, all the way up to 1.2500. That might look like a big distance to go and it is. However, if the USD can’t stem the bleeding, then we might hit those levels faster than we think.