The euro/dollar (EUR/USD) gained about 4.6% in 2013. But traders with technical approach will pay attention to the wave structure and personality of that move as well, rather than just to numbers.
On the weekly chart of the EUR/USD shown below we see an overlapping price within rising wedge pattern. This type of a price action usually occurs at the end of the larger bullish pattern, which means that pair could form a top early in 2014. From an Elliott Wave perspective we call this an Ending Diagonal, referred as a reversal pattern that unfolds in five waves.
As we can see on the chart, the price is already moving up in fifth wave so rally on EUR/USD could be in final stages, approaching potential reversal zone at 1.4000 psychological level. There is also an upper trendline and some Fibonacci resistance levels around that figure that may hold as resistance.
