EUR/USD Mid-Session Analysis for December 3, 2012

The EUR/USD is trading sharply higher at the mid-session. In the process of posting this solid gain, it has broken out over a downtrending Gann angle at 1.3057. This sets up a possible move to another target at 1.3098. 

Because of the strength on the daily chart, we have to revert to the weekly chart for additional resistance areas and target prices. The first weekly Gann angle target is 1.3087. This helps create a daily/weekly resistance cluster at 1.3057 to 1.3087 that could attract profit-taking or fresh selling pressure.

Back-to-back high momentum days have been pretty rare for the EUR/USD, but after a near-term consolidation, it is possible that the Forex pair may launch another strong move into a pair of tops at 1.3139 and 1.3172. 

The market is beginning its acceleration phase which means it is pulling away from support so the uptrending Gann angle at 1.2940 is not expected to be tested. It should, however, control the direction of the market over the near-term. To put it another way, I will be surprised if this angle is tested before the market reaches the October top at 1.3139.