Figures! The long term ascendant trend line coming from 1.2755 was more than good after all, and the EUR/USD not only bounced from it, but extended up to close the week above 1.3880 former resistance level; the pair flirts with 1.3900 as the day fades, having been pretty much indifferent to almost everything: negative European data, positive US one, and even ECB officers jawboning on QE.
Technically, the most significant note is the fact that the long term trend line was strong enough to halt sellers, and attract enough buyers to push the pair to fresh 3 weeks highs, leaving it a handful of pips below the year high. But is not just that: price broke above a daily descendant trend line and accelerated above its 20 SMA in the daily chart, while technical indicators are back grinding higher above their midlines. Is not that they present a strong upward momentum right now, but at least the pair has shrug off the negative tone seen last week.
For the upcoming days, a test of 1.3966 year high seems likely, while a break above should lead to an inevitable test of the 1.4000 figure, albeit EU CPI readings may produce an intraday kneejerk or even a strong downward correction if they miss expectations. But technically, the picture is bullish, and a weekly close above the 1.40 mentioned level, should open doors for more gains, looking for a test of 1.4250 strong resistance area then.
To the downside, the immediate support for the week comes at 1.3830/50 price zone, where intraday buyers have been surging over these last couple of days. If below, next level is 1.3780, 38.2% retracement of the latest daily bullish run. Only below this last market will disregard the chances of strong gains for the week, and even accelerate the downside on profit taking another 100 pips.
View Live Chart for EUR/USD
Technically, the most significant note is the fact that the long term trend line was strong enough to halt sellers, and attract enough buyers to push the pair to fresh 3 weeks highs, leaving it a handful of pips below the year high. But is not just that: price broke above a daily descendant trend line and accelerated above its 20 SMA in the daily chart, while technical indicators are back grinding higher above their midlines. Is not that they present a strong upward momentum right now, but at least the pair has shrug off the negative tone seen last week.
For the upcoming days, a test of 1.3966 year high seems likely, while a break above should lead to an inevitable test of the 1.4000 figure, albeit EU CPI readings may produce an intraday kneejerk or even a strong downward correction if they miss expectations. But technically, the picture is bullish, and a weekly close above the 1.40 mentioned level, should open doors for more gains, looking for a test of 1.4250 strong resistance area then.
To the downside, the immediate support for the week comes at 1.3830/50 price zone, where intraday buyers have been surging over these last couple of days. If below, next level is 1.3780, 38.2% retracement of the latest daily bullish run. Only below this last market will disregard the chances of strong gains for the week, and even accelerate the downside on profit taking another 100 pips.
View Live Chart for EUR/USD
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