The rose to a six-week high against the U.S. dollar on Monday as expectations that the European Central Bank will undertake further stimulus measures continued to fade. Now within sight of a two-year high set in October, charts indicate that a sustainable uptrend is at hand.

The euro/dollar's strong breakout above the middle point of a broad range-trading band in September has continued. Best viewed on a weekly chart display, we can see that the pair's rebound rally since retreating to $1.34 support on November 9 is strong and sustainable, with an upside target near $1.40.

(Read more: Resilient euro just won't be held back)

The trading band's lower support is located near $1.28. While this is not an exact level it has served as a support region and was tested in November 2012, as well as March, May and July of 2013.

The upper resistance level is near $1.40 – a long-term level that was created between October and November 2010 and acted as support from May to September of 2011 before the pair fell below that level. While it has not been tested since November 2011, the current breakout is moving towards this resistance level.

The euro/dollar has oscillated around the central trading support and resistance level