Updating our last report, the index breached the focal resistance at 3035, where it represents the neckline for the bullish pattern shown above.

Euro rebounded from levels around 1.3400 due to the positivity of momentum indicators, where it neared the retest level once again around 1.3575.

Over weekly basis, the index continues to trade within the ascending channel carrying trading from the bottom recorded at 3584.00.

The pair stabilized below the breach neckline for the bearish technical pattern shown above, alongside the negative pressure offered by the SMA 50, and we expect further bearish intraday movement throughout this week; targets start by testing the strength of areas between 1.3400 – 1.3365.

Over four-hour basis, the pair exited the main descending channel by breaching its resistance on January 11.

The Euro continued its bearishness and now  attempting to breach the neckline at 1.3575 and stabilize below it. In addition to the neagtive pressure from the SMA 50 we still expect a bearish intraday direction targeting initially 1.3400 – 1.3365. Our expectations require stability below 1.3640.

Over daily basis, the index breached the psychological areas of 12,000 and stabilized above this level with a series of daily closings.

Euro succeeded in resuming yesterday’s incline to reach levels near 1.3750 and reverse to the downside, where we currently expect more downside movement that will complete forming the right shoulder for the suggested bearish technical pattern.

After the grand decline from the recorded top at 91.49 to the trough at 44.21, the pair started the upside correction which temporarily stopped at 50% Fibonacci correction around 67.75.

Euro is fluctuating around the SMA 50 and finding difficulty in resuming yesterday’s suggested upside move due to the negative effect from Stochastic.