FX Update : Buy Eur/Usd

EURUSD is a pending buy at 1.3060, targeting 1.3250, with a stop at 1.2925. The recommendation will be removed if 1.2925 trades before 1.3060.

EURUSD has advanced strongly and closed with a bullish candle off Wednesday's low at 1.2925. Buoyed by a potential double bottom at the Jan. 12 low of 1.2865 and the Jan. 16 low of 1.2876, the single currency is set to ascend further on the back of rising lows.

Underpinned by bullish momentum indicators, expect a break of 1.3054 and 1.3057, the Jan. 9 high and the 38.2% retracement of 1.3368 to 1.2865, which is key in confirming a double bottom breakout towards 1.3181, the Jan. 4 high.

Beyond there bodes well for another upswing towards the 76.4% retracement level of 1.3249, preceding a possible extension to key resistance at 1.3298, the Jan. 2 high. Near-term support is located near the Jan. 30 former high at 1.2982.

Renewed loss of 1.2925, Wednesday's low, would however reinforce another low top, which would suggests a deeper setback below 1.2865-76.