The EUR/USD hasn’t managed to hold above the 1.3400 level that i deemed necessary for it to have a chance to testing the 1.3880/00 region and is now threatening to take out the 1.3300 level. As the hourly chart shows, a break below 1.3300 would take out the trend line that has been in place since early March and open the way for a move to 1.3150.
The daily chart is a little bit of a concern given that we have now seen the 5 DMA cross back below the 15 DMA which is not a good sign and often indicates lower levels. I think we now struggle to get back above 1.3580 and would be looking to sell bounces back to 1.3480/00 and also look to sell on the break of 1.3289.
