EUR/USD
The euro zone inflation is adding pressure on the ECB. The ECB approach should weaken the euro. Traders are waiting for today's economic data German services PMI, Italina services PMI, French services PMI. In the monthly chart, the pair is trading below the descending trend line. From the below chart, we can assume the price will pull down to lower levels from the upper trend line. The pair will face another round of selling below 1.3560 (50-week SMA) levels, up to 1.3477, 1.3414, 1.3314 (monthly 50 SMA), 1.3295 and 1.32 levels.
The pair will get buyers support until it breaks the 1.3560 level, on the up side, the pair will face strong resistance levels at 1.3670 and 1.3733 (Bollinger band middle). We can't see another run up until the pair crosses above 1.3670 on a closing basis.
For the last 5 trading days, the pair has been consolidating at 1.3585 levels and pushed towards the 200-day SMA levels, but was unable to close above this. Currently, the pair is trading between 1.3585-1.3650 levels. In yesterday's trading session, the pair made a double bottom at 1.3588 levels. The weakness will start again below 1.3560 and panic stage will activate below 1.3550 for 1.3477 as an immediate target.
As per the above study we recommend the following.
Sell below 1.3560, safe traders, sell below 1.3550.
Bulls are back on track only above 1.3670 on a closing basis.
Free fall is below 1.3520 (lower Bollinger band).
Upturn is expected between 1.3550-1.3520, chances are remote.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Technical analysis of EUR/USD for June 04, 2014 . Thanks for your support on Technical analysis of EUR/USD for June 04, 2014
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