Little happened to the pair this week, except for a measly 70 pips slide compared to past Friday close. Easter holidays may have had something to do with it, but is not the only reason: bulls are hesitating some amid the extended ECB members jawboning, but there are no signs they are giving up. Sellers had been surging on approaches to 1.3850/60 but anyway the pair held above the 1.3800 figure, which at the ends continues to be overall positive for the pair.
There are however some developments in the daily chart that worth watching, starting with the weekly opening well below Friday’s doji, and the unfilled gap left then. Earlier in the week the picture suggested the beginning of a reversal, some exhaustion in the dominant bullish trend. Even further, this week candles shown long upper shadows that reflect the increasing bearish pressure the pair is suffering nowadays.
But beyond being sort of an alert, the fact is that there is no technical confirmation yet, the pair has topped out and is ready to reverse course: in the same time frame, price stands above a flat 20 SMA and indicators in neutral territory, while price also held above the 38.2% retracement of its latest bullish run around 1.3780, all of which result of a consolidative stage rather than a new trend developing.
The chart also shows that price remains above the long term daily ascendant trend line coming from 1.2755, July 2013 monthly low, around 1.3750 for the upcoming week. As long as above this level, risk to the downside remains contained, while below the pair may attempt a test of the 1.3640/60 strong static support zone. But it will only be with a break below this last that the pair will lose its upward potential.
Weighted by words, the pair failed to close the weekly opening gap as said before, still waiting there in the 1.3890 price zone: it will take a price acceleration above this last to confirm a retest of the year high in the 1.3966 region, while once above market will be looking to test the critical 1.4000 level.
View Live Chart for EUR/USD
There are however some developments in the daily chart that worth watching, starting with the weekly opening well below Friday’s doji, and the unfilled gap left then. Earlier in the week the picture suggested the beginning of a reversal, some exhaustion in the dominant bullish trend. Even further, this week candles shown long upper shadows that reflect the increasing bearish pressure the pair is suffering nowadays.
But beyond being sort of an alert, the fact is that there is no technical confirmation yet, the pair has topped out and is ready to reverse course: in the same time frame, price stands above a flat 20 SMA and indicators in neutral territory, while price also held above the 38.2% retracement of its latest bullish run around 1.3780, all of which result of a consolidative stage rather than a new trend developing.
The chart also shows that price remains above the long term daily ascendant trend line coming from 1.2755, July 2013 monthly low, around 1.3750 for the upcoming week. As long as above this level, risk to the downside remains contained, while below the pair may attempt a test of the 1.3640/60 strong static support zone. But it will only be with a break below this last that the pair will lose its upward potential.
Weighted by words, the pair failed to close the weekly opening gap as said before, still waiting there in the 1.3890 price zone: it will take a price acceleration above this last to confirm a retest of the year high in the 1.3966 region, while once above market will be looking to test the critical 1.4000 level.
View Live Chart for EUR/USD
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