EUR/USD Technicals – Short-Term Downtrend Threatened

EUR/USD Technicals – Short-Term Downtrend Threatened

A boring Monday for EUR / USD, prices were to remain within most of 1.3745 to 1,376 band and do not do much. Even a better than expected German retail sales print (1.3% vs. -0.5% expected M / M) failed to ignite any significant bullish response, with the resulting bullish reaction even smaller than the initial rally since, during the early hours of the market opening.

this lack luster response is a strong sign that the short-term sentiment is bearish, and we can see a preview of this bearishness by the way prices have started down this morning. However, do not count out the bulls - the price of EUR / USD shot higher after the initial failure, led by bullish appetite obvious risk by gains in Asian shares. Therefore, even if the market sentiment is bearish, bearish force does not exceed the impact of wider market risk trends, as European equities should remain optimistic, we should not expect sharp falls EUR / USD in the immediate future.

timetable

agreement techniques, as prices pushed above the downward trend line, of compromising the bearish momentum that has been in play last week. Similarly, the stochastic readings began to point more after bouncing off "support zone" between 20 to 30.0 level. Therefore, the probability of a new 1376 test can not be ignored and we could see even more optimistic pushed so 1376 is broken.

Table Daily

There is light bearish bias via the daily chart, however. Prices may be considered bullish our perspective starts from early November 2013 in early February 2014. However, if we look to the heights of Mars and immediate direction is actually bearish. Considering that we managed to invalidate a bullish breakout scenario, it is clear that the downward momentum is strong and we could see yet another retest of 1.37 and even lower targets if a head and shoulders pattern is formed. Prices may head over the short term (as seen on the hourly chart) but with a resistance lower the expected head trendline, the probability of a bearish rebound increases

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