First of all, let me start by wishing you a very happy, prosperous and healthy new year!

In my last analysis on 26 Dec of Eur Usd I indicated various reasons why I think this pair is bottoming and ready for a rally of weeks and possibly hundreds of pips.

I entered a long trade at 1.3066 with a stop below 1.2920, but since the holiday markets were rather thin, the powers that be tried to run stops and squeeze out all long positions (in my opinion). Eur/Usd was pushed down all the way to 1.2860-ish and I decided to lower my stop to be able to hold the position.

So far it seems I am right with my decision since Eur Usd is trading at 1.3030 again. Let’s have another look at an updated daily chart (click on it for a larger view):

• The positive RSI divergence is still in place.
• 29 Dec 2011 was a reversal candlestick pattern on the daily chart.
• The MACD histogram has crossed above the 0 line.
• On 10 January 2011 (Vertical line on chart above), Eur Usd started a huge multi month rally.

All in all, I’m still holding the long Eur Usd position from 1.3066 with a stop below 1.2900 and a target of 1.35 or higher.