In the euro zone, the industrial production was down by 0.3% in March led by a trip in energy production. EUR/USD looks stronger in technical aspects than in fundamental ones. It has been trading in a downtrend from 1.40 levels, making lower lows and lower highs. In yesterday's trading session, the pair paused its downtrend making a higher low. We recommended to buy this pair at 1.3703 levels and still we are recommending the same strategy.
Currently, the pair is in a range between 1.3774-1.3689 (Tuesday's high and low). On the down side, the pair has support at 1.37 and 1.367. The crucial game changer level exists at 1.3616 (200daily EMA) and 1.36 levels. The daily momentum oscillators favors the buy side, our view is supported by the RSI and Stochastics on a positional basis. With the support of the technical aspects, it promises the limited downfall if negative news hits the pair, and it will bounce immediately. The pair looks weak below 1.367 for 1.3643, 1.3616 and 1.36 as an immediate targets. On a closing basis, if the pair closes below the 1.367 levels, the shorter-term bear bells will start for second round selling for a deeper correction.
Intraday-
In Asia's trading session the pair is trading at 1.3717 facing resistance at 1.3755 and 1.3775. The hourly momentum indicators favor a pullback from the oversold levels. The pair is trading between 1.3730-1.3703 levels. Once it breaks to the up side, it will extend it's up move up to 1.3755, 1.3768 and 1.3775 levels immediately, later 1.38 and 1.3825 are on the cards.
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on market trends you may visit via Technical analysis of EUR/USD for May 15, 2014 . Thanks for your support on Technical analysis of EUR/USD for May 15, 2014
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