To get an idea of where the pair is heading next we have to move away from the short term charts of the hour, the day and the week , and start to concentrate on the month for an analysis of the technicals.
Back in April 2006, the market formed a bullish engulfing moving from 1.7358 to 1.8252 with a major resistance level at 1.9250. This level was eventually breached in November to 1.9680 and was subsequently followed by three dojis and a hanging man. For long term traders this would have indicated a turning point with a confirmation expected after the hanging man in March. However the pair have continued to rise further with what looks to be a continuation of the upwards trend with a likely move above 2.00 and beyond.
The weekly picture is much the same, with increasingly higher levels of resistance being broken in an upwards trend. The pair show no signs of reaching a top at present, and with the fundamentals working in opposition, a move above 2.0000 and beyond seems inevitable.