The euro stayed above the 1.3833 support and came higher. We could not break the 1.3880 resistance; however, this leaves us still within the recent range. Looking at the daily charts there seems to more emphasis on the downside at the moment with 1.3833 looking to entice once more.
This would be our minimum downside objective, and initially we would cover all shorts to here. We would also re -instate small longs looking for a continuation of the upward move. However, we would not hold longs if the market broke 1.3830. If we did this then we would expect further weakness down to 1.3795. Technically all time frames are slightly bullish..except the daily ones, there are beginning to turn negative. Now, if we cannot break and hold above 1.3916 then we are going to once more fail on the topside and come lower...If however we can break and hold above 1.3916 this would break the topping pattern evident and we have an extremely good chance of being able to trade higher with 1.4010 then the short term objective..
As stated, 1.3833 offers short term support. Failure to hold over here keeps the pressure to the downside, thus seeing longs reversed for further downside moves to 1.3795 then 1.3775.
EUR/USD Daily Chart" title="EUR/USD Daily Chart" width="474" height="242">