EUR/USD Stuck Between Psychological 1.3000 And Trend Line Support

May 26, 2013 in Chart Alert

EUR/USD had failed at 1.3042 and the fall from there broke the psychological support of 1.3000 again and the pair went as low as 1.2796. The support came at the emerging mid term support trend line. The price action is also bringing in a head and shoulder chart pattern and a break below 1.2745 will complete that pattern. If such a move takes place then deeper declines towards the psychological ranges of strong 1.2500 support ranges may be seen.

EUR/USD weekly chart

EUR/USD weekly chart - trend line and head and shoulder pattern

 

What does the daily chart say?

The daily chart is showing that the resistance is coming just below 55-day EMA but on the other hand the approximate double-top pattern formation may already be over. This may keep the pair in a sideways mode for some time.

EUR/USD Daily chart

EUR/USD daily chart

Please also check the weekly outlook of EUR/USD.

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