Euro/Dollar (EUR/USD) Technical Analysis - Weekly, 20 week, 2010

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The news about the aid plan the EU government has agreed upon sent a big relief signal to the markets and the Euro jumped against the Dollar. It covered almost 5 cents of losses and currently trades at around 1.2930/40.
Technically there is a chance for a strong bullish Euro divergence to be formed on the weekly Euro/Dollar graph which could signal the start of another medium-term period of value decrease of the US Dollar.
Currently the Stochastic is pointing upward so this week could be a week of the Euro. Still the MACD is in a negative position so this should also be kept in mind.
If the expected increase of the Euro value takes place the first milestone is around 1.31 (a  level that was already touched today) which is the 23.6% Fibonacci retracement level. The second Euro resistance level after the first one lays around 1.34/35.