EUR/USD was in sharp swing trade yesterday and extended further above the upper leg of the falling channel but failed to sustain gain and dropped below it towards a test of the temporary low. Intraday bias remains on down move after EUR/USD dipped below and now is trading below previous low. On the upside, Recovery from 1.3498 to continue, price needs a consolidative trade above minor resistance level at 1.3740 first, and fill up the gap, thus would indicates that bulls are accumulating power for a retest of the 1.3824 level. Only sustain trade above that level would flip bias back to bullish.
Only sustain trade below 1.3839 level is in favor of down move, if price break the swing low price will decline further more. In this case, first target is towards test of the key support zone at 1.3400/1.3420 – where is FE 1.328, as long as 1.3740 holds. Sustain trade below it would further decline in price towards 1.3115 where is FE 1.618 level.
Daily Pivots: Pivot point – 1.3646, 1st Support – 1.3494, 1st Resistance – 1.3734