The EURUSD maintained a bearish momentum yesterday , topped at the 1.3845 levels and bottomed at the 1.3748 levels . This development leaves the pair targeting the 1.3690 levels . At this point I’d expect strong support from the 1.3690 levels to contain downside from 1.3965 levels and bring rally resumption above 1.4000 levels.If 1.3690 fails on a daily basis , expect the market to weaken further towards the 1.3615 levels where a breach will turn focus on the 1.3530 levels .Note : If 1.3690 fails , downside from 1.3965 is likely to be contained by the 1.3530/1.3615 levels.
On the upside , resistance comes at the 1.3809 levels , break of this level would open main resistance at the 1.3845 levels . break of 1.3845 levels on a daily closing basis , will suggest that fall from 1.3965 is over , If seen , sooner or later the pair will recapture the 1.3933 levels , a breach should target the 1.4000 levels , further out will aim the 1.4100 levels ahead of the 1.4200 levels……..
In all , as long as resistance 1.3845 holds on a daily closing basis , the EURUSD will remain based to the downside towards 1.3690 levels , break of 1.3845 levels will reverse risks towards the 1.3933 levels ahead of 1.4000 levels…