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Technical Analysis EUR/USD

1 Hour Intraday Trading.

The Euro tried to push upwards on Friday session as banks adjusted positions of the year end. That push created an upward channel (blue lines).I expect the price to test the 50MA and maybe the S1 at 1.3710 and move higher testing again the R1 and why not try to test again the upper boundary of the channel, if price manage to close between S1 and S2 then we have entered the critical support area which may indicates the change of the trend.

As long as the price remains above 50MA and S1 then we can only talk for bullish momentum which also is confirmed from our indicators while Stochastic is at oversold area as %K penetrated upward the %D.

Scenarios

As long as price trading between the boarders of the range that we mentioned , we cannot take a clear position Long or Short. A break out below the S2 will alert a signal for a possible downward move and will give the power to the price to close or maybe test the S3 at 1,3570

On the other hand a break above the R2 which is a really strong resistance level will be a sign that price will move for new highs for this year and most probably will test the 1,3817 level the top that was formatted at 30th of December of 2013

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