• EURUSD broke key resistance level 1.2300
• Likely to rise to 1.2400

EURUSD currency pair recently broke above the key resistance level 1.2300 (which stopped the previous upward impulse with the daily Bearish Engulfing at the end of December, as can be seen from the daily EURUSD chart below). The breakout of this resistance level continues the active minor impulse wave 5 – which belongs to the medium-term upward impulse sequence (3) from the start of November.

Given the clear daily uptrend and the rise in the risk sentiment across the FX markets on the expectation the Democrats wills secure the majority in USA congress – EURUSD is likely to rise further toward the next resistance level 1.2400 (target price for the completion of the active impulse waves (iii),5 and (3)).