EUR/USD Weekly Technical Report 23-27/12/2013

The pair has mildly retraced ahead of the closing of the previous week following the sharp decline seen on Wednesday and Thursday. However, the closing was achieved below the middle line of Bollinger bands, which represents a new technical obstacle. The bearish effect of the harmonic pattern discussed earlier over four hour interval is still in play, while hitting SMA 50 at 1.3600 is required to affirm the bearishness expected for this week. On the upside, taking out 1.3830 will negate our scenario.