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EUR/USD: Pulling-Back To Trend-Line | Technical Analysis 15th January 2014

The EUR/USD pair has pulled back down to support from a major trend-line at 1.3615 where it is currently consolidating. The pair is also gaining support from the 50-day MA situated at the same level. The short-term up-trend remains just about intact, and combined with the robust support it will probably resume, with the next target higher situated at the 1.3700 highs and then the 1.3725 level where the monthly pivot is situated.

(click to enlarge)Click to enlarge

A move above 1.3644 would help provide confirmation. A decisive break below the trend-line at the current lows - below perhaps 1.3575 - would start to qualify as a break and reversal of the short-term trend, and probably lead to a move down to the previous lows and the S1 monthly pivot at 1.3548, with a break below those adding further confirmation.

Analysis by: Joaquin Montfort - Liga Forex Analyst