EUR/USD Weekly Technical Report 27-31/1/2014

The pair moved to the upside last week and started this week trading above the key support level of the ascending channel as showing on graph. The pair also stabilized above Linear Regression Indicators and above 1.3655 levels represented in 38.2% correction.

The possibility of extending the upside move is valid with some bearish corrections especially that Stochastic is attempting to confirm a negative divergence. Generally, stability above 1.3550 will keep the positive expectations valid this week, but breaking the referred to level will fail the positivity and trigger a sharp bearish wave.