EUR/USD Weekly Technical Report 11-15/2/2013

The pair dropped last week affected by the AB=CD bearish harmonic pattern, trading now below the first target of the pattern at 38.2% correction of the CD Leg at 1.3440. Stability below the mentioned level might extend the downside move reaching 61.8% correction at 1.3270 levels, a break of which might take the pair to test the key medium-term support of the bullish wave. Despite oversold signals on Stochastic, trading below 1.3440 levels will keep the bearish move valid supported by the negative Linear Regression Indicators.

The trading range for this week is among the key support at 1.3150 and key resistance at 1.3545.

The general trend over short term basis is to the upside targeting 1.3990 as far as areas of 1.3550 remains intact.