EUR/USD: With EUR reversing its previous week gains to close lower on sell off, there is risk of continued weakness in the new week. While the pair holds below the 1.3624 level, further decline cannot be avoided.
Further down, support stands at the 1.3600 level with a break turning focus to the 1.3500 level and possibly lower towards the 1.3400 level. We may see bulls come in here and turn the pair higher.
On the upside, for EUR to annul its present weakness and resume its broader medium term uptrend, it will have to recapture the 1.3893 level, its Dec 2013 high. This if seen will call for a run at the 1.3950 level and then its big psycho level at the 1.4000 level.
All in all, EUR remains biased to the downside on corrective pullbacks.
Guest post by FX Tech Strategy
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