Chinese growth bouncing in the Q4, feed ongoing demand of higher yields, sending EUR/USD to a daily high of 1.3397, few pips shy from this year high of 1.3403. However, the European session with negative news from Spain and the UK, is propelling some profit taking ahead of the weekend, with the pair hovering around 1.3350, short term static support. 4 hours chart shows upward momentum easing, as indicators turn slightly south still in positive territory, while 20 SMA remains flat below current price. What’s really interesting, is the double top set at 1.3400: the figure has its neckline around this week low 1.3256, that converges with the 38.2% retracement of its latest daily run. While price is 100 pips away from the level, a break below it will point for a 150 pips run lower, targeting then, the 1.3100 area. In the short term, increasing bearish pressure will surge if the pair losses 1.3320, towards mentioned 1.3250/60 price zone.
On the other hand, a bullish acceleration above 1.3410 will likely trigger stops and see the pair surging to end the week around the 1.3460/85 price zone.View Live Chart for EUR/USD