While short term bullish, the EUR/USD is still looking for direction: range bound since late September, the pair is having a hard time lately to overtake key 1.30 psychological level. The lack of aid request from Spain is slowly eroding the little confidence triggered by ECB’s announcement of the OTM. Friday’s failure around 1.2990 continues to be significant, and with a daily descendant trend line today around 1.3020, there is little room to maneuver if price finally advances above such high.
Technical readings in the 4 hours chart support the upside, yet a break above the trend line is now required to confirm a stronger upward movement, towards the 1.3070, October 5th daily high. Daily close around those levels, will open doors for a retest of 1.3170 later this week.
Downside seems quite limited, yet below 1.2930 there is scope for a test of the 1.2875/90 area if market sentiment flips to negative with US data to be release later today. View Live Chart for EUR/USD