EUR/USD: EUR now faces risk of more downside pressure having followed through lower on the back of its Tuesday weakness. Support comes in at the 1.3687 level, its Dec 27’2013 low with a breach targeting the 1.3624 level, representing its Dec 24’2013 low and and then the 1.3550 level. We may see the bulls come in here and push the pair higher.
However, if this fails to occur, expect further downside threats towards the 1.3500 level. Its daily RSI is bearish and pointing lower supporting this view.
On the upside, resistance resides at the 1.3766 level, its Jan 02 2014 high where a violation if seen will pave the way for a run at the 1.3810/31 levels. A cut through here will expose the 1.3850 level and subsequently the 1.3900 level.
All in all, EUR continues to face bear triggered on pullbacks.
Guest post by FX Tech Strategy
