The EUR/USD gains some ground in Europe, as local share markets present a strong upward momentum, while US futures also head back to recent 5-year highs. The EUR presents a general strength against most rivals, surging against the greenback to fresh daily highs. The 4 hours chart shows indicators aiming higher still below their midlines, while price stands above 20 SMA, reflecting the increasing bullish pressure. The pair may found some selling interest in the 1.3270/1.3300 area, and retracements from the area could be expected. However, the key level to follow lies above, in the 1.3350 region, where the pair has a daily descendant trend line coming from 1.3710: only above such level the upward movement could turn into a recovery and not a mere correction.
The downside is now protected by buyers around 1.3210/20; once below, the pair has scope to fall back towards the 1.3150/70 price zone.View Live Chart for EUR/USD