With the EUR/USD reaching 2 year highs and the NZD/USD still bid to the sky, we have reached the point where you have to decide if its gone far enough or the momentum will continue. Despite the positive gains for the EUR/USD it only finished the week up +36 pips from the close of the prior Friday. Not the kind of momentum to get too excited about. Still old Teflon has stayed resilient much to the chagrin of the permabears. The NZD rate boost was well advertised but Wheeler’s hawkish tone was more of a shock. That probably had more to do with the strength of the move in the NZD/USD. But we have reached the proverbial line in the sand on these two pairs. They have both hit and been rejected by the weekly trend lines. Although the rejection wasn’t as strong as one might expect. I have included daily charts with weekly trend lines which also show a divergence on the daily stochastic. So what do you think? Momentum carries them further, or time to pack it in and give the bears their day in the sun?