EURUSD failed to break above 1.3864 resistance, indicating that the pair remains in downtrend from 1.3905, the rise from 1.3785 could be treated as consolidation of the downtrend.

As long as 1.3864 resistance holds, the downtrend could be expected to resume, and one more fall to 1.3750 area to complete the downward movement is still possible.

On the upside, a break above 1.3864 resistance will indicate that the downtrend had completed at 1.3785 already, then the following upward movement could bring price to 1.4000 zone.

Editor’s Note: Equity investors/traders can use the Currency Shares Euro Trust (FXE, quote) ETF to take positions in the euro without a FOREX account.  The ETF looks to track the price of the euro, minus ETF fee. The fund seeks to reflect the price of the euro with the shares representing a cost-effective investment relative to investing in the FOREX market.

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