EUR/USD is now sliding lower within a downtrend channel, as the chart shows. Has the pair peaked at 1.34? Or this just a temporary consolidation before the next move?
The pair began the week by crossing the round number of 1.34, which is also a resistance line. This move higher was not confirmed, and the pair began sliding lower.
Update: Pull-back May Find A Support At 1.3300 or 1.32460 Level – Elliott Wave Analysis
Euro/dollar found support just above 1.3330 and moved up from there. The moves up and down eventually formed a downtrend channel.
On the upside, 1.3480 is a very important line of resistance, after being the peak of 2012. It is also just below the round number of 1.35. On the downside, 1.3290 provides support, followed by 1.3240.
For more lines and events, see the EURUSD forecast.
On one hand, the relatively optimistic words from Draghi continue supporting the pair. On the other hand, the “positive contagion” he has been talking about, has yet to reach the real economy.
Further reading: EUR/USD Rebounds Off Key Support Confluence
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