EUR/USD: 1.3650 Is A Pivotal Level To Watch

After a rapid sell-off form the 1.390 highs the EUR/USD appears a little rattled as it prepares to build strength for its next move. But, as always the questions remains, which direction will that be?

EUR/USD WEEKLY:
After 1.39 was briefly tested we rapidly began to reverse - the market just did not want to go higher on this occasion. Since then we have produced 2x weekly bearish candles (Shooting Star and Bearish Belt Hold). This week we have briefly broken beneath the low of last week;s and already tested the 1.3650 pivotal S/R.

I consider 1.3650 to bea an area to watch out for and may provide clues for the next few trading session, perhaps even longer.
EUR/USD Weekly Chart" title="EUR/USD Weekly Chart" width="452" height="684">
EUR/USD DAILY:
Here you can more easily see why 1.3650 is a pivotal level. We are currently sandwiched between this and a rising trendline. The bears may well be looking at the fact we have broken beneath 1.65 and the prior swing low, and awaiting a break of the current (valid) trendline as another opportunity to get short. In the event we do break beneath the trendline, then 1.3328 and 1.3100 are my next targets.

However the euro has fooled me many times last year and continued to grind higher after generating many bear signals.

So, in the event the trendline continues to hold and we break back above 1.3650 level the bullish trend remains intact and buying opportunities would be the preferred option.
EUR/USD Daily Chart" title="EUR/USD Daily Chart" width="452" height="684">
SUMMARY:
- Bullish above 1.3650
- Bearish beneath break of trendline and maintains beneath 1.650

DISCLAIMER: Trading in the Foreign Exchange market involves a significant and substantial risk of loss and may not be suitable for everyone. You should carefully consider whether trading is suitable for you in light of your age, income, personal circumstances, trading knowledge, and financial resources. Only true discretionary income should be used for trading in the Foreign Exchange market. Any opinion, market analysis or other information of any kind contained in this email is subject to change at any time. Nothing in this email should be construed as a solicitation to trade in the Foreign Exchange market. If you are considering trading in the Foreign Exchange market before you trade make sure you understand how the spot market operates, how Think Forex is compensated, understand the Think Forex trading contract, rules and be thoroughly familiar with the operation of and the limitations of the platform on which you are going to trade.

A Financial Services Guide ( FSG) and Product Disclosure Statements (PDS) for these products is available from TF GLOBAL MARKETS (AUST) PTY LTD by emailing compliance@thinkforex.com.au .The FSG and PDS should be considered before deciding to enter into any Derivative transactions with TF GLOBAL MARKETS (AUST) PTY LTD. Please ensure that you fully understand the risks involved, and seek independent advice if necessary. Also, see the section titled “Significant Risks” in our Product Disclosure Statement, which also includes risks associated with the use of third parties and software plugins. The information on the site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. 2013 TF GLOBAL MARKETS (AUST) PTY LTD. All rights reserved. AFSL 424700. ABN 69 158 361 561. Please note: We do not service US entities or residents.