The Euro is gaining ground today as the ECB decides to leave interest rates unchanged and it is not implementing more stimulus measures. But the pair has reached the psychological round number of 1.3600, where we have the 55 EMA (purple line) very close to it. It is no surprise then that the prices are trying to stall here and most probably bounce to the downside. This visit to this level coincides with the 200 EMA on the 4 hour chart.
EUR/USD: Daily" title="EUR/USD: Daily" height="242" width="474">
On the 4 hour chart, we can see how close to the 1.3600 level we have the 200 EMA (blue line). This has made this zone a very important resistance area for the pair. We may take this opportunity to go short, but in case that the price continues going higher, what we do is wait for confirmation of the breakout of the 200 EMA and then for the pullback for a long entry. The next resistance after the breakout to the upside would be the next psychological round number of the 1.3700 level.
