EUR/USD charted an inside day yesterday and we suspect that the market is in consolidation mode having recently reached the 1.3424 200 week ma. A negative bias will remain entrenched below the 1.3557 2 month downtrend. Around here we also find the 1.3391/1.3385 55 MONTH ma and the base of the monthly cloud.
A close below 1.3385 is expected to act as a catalyst on the downside and act as a trigger for a slide to the 1.3295November 2013 low en route to 1.3020/00, the 50% retracement of the move up from the 1.2042/July 2012 low. Only above 1.3557 would delay our immediate negative outlook for a deeper retracement to 1.3665/1.3700, while capped here a negative bias remain intact.
CB