Technical analysis of EUR/USD for May 01, 2014 Trend News

EUR/USD

Review

Euro zone inflation rose in April, reducing chances the European Central Bank will act soon to ward off deflation, but the pace of price rising was below forecast and still within the ECB's "danger zone" of under 1 percent.

April's reading takes inflation back to where it was in February but it is below the 1.2 percent of April 2013. Still, the lack of a clear uptick in consumer prices will keep pressure on the ECB to act to stimulate the economy, possibly by lowering rates again, although it is not expected to do so at its next policy meeting on May 8.

Technical view-

The pair is trading at a lower lows and lower highs pattern. In yesterday's pull back, it was unable to cross the high of 1.3880. In Asia's trading session, the pair is trading at 1.3869 levels as of now, the pair opened with a bullish note. It's not safe for fresh buyers to enter at this level. One can enter above 1.3880 for 1.3906, 1.3934 and 1.3950 levels. Safe traders can buy above 1.3906 for smaller targets. The major trend change will happen once the pair crosses the 1.40 levels. In the daily chart the RSI is indicating limited upside and more noise in coming sessions. Until the pair crosses the 1.3906 levels, the downside target at 1.36 is an open target with intermediate ups and downs.

Intraday-

The pair has support levels at 1.3850, 13835, 1.3827 and 1.38. It has been struggling to cross the 1.3880 levels. RSI favors sell side in today's session. Sell on rise is the best strategy.

On the upside, if the pair crosses the 1.3880, please be on the buy side, or if you are not intending to be on the buy side, don't sell. Huge short covering will take the pair towards 1.3906 levels in a fraction of minutes, it sustains above 1.3906, huge green ticks will take place aiming at 1.40/1.41 levels.

On the down side, for an intraday perspective, if the pair breaks below 1.3850 levels, the next major support comes at 1.38 and 1.3774 levels. I expect today or tomorrow the trend to change, I prefer selling on rally. Currently, the trend is between 1.3906-1.3774 levels.

The material has been provided by InstaForex Company - www.instaforex.com



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