EUR USD: Technical overview for 2014

By studying the weekly chart for the EUR USD pair, we find that the pair is moving within a bearish correctional track after placing the historical high at 1.6039, while this correction is organized within a bearish channel that appears in the above chart.

The 50% Fibonacci level showed strength against the pair’s decline, to head now towards the bearish correctional channel attempting to breach it and turn back to the main upside trend again, and all needed now is a clear breach above 1.3940 level followed by weekly closings above it to confirm stopping the bearish correction to target main areas that begin at 1.5000 for the new year, followed by heading towards the historical high mentioned above.

On the other hand, its important to note that breaking below 1.3195 will invalidate the suggested positive overview for the upcoming period and will lead to target 1.2300 areas which represent 50% Fibonacci level.