EURUSD broke above the downward trend line on 4-hour chart, indicating that consolidation of the downtrend from 1.3700 is underway.

Range trading between 1.3366 and 1.3470 would likely be seen in a couple of days.

Resistance is now at 1.3470, as long as this level holds, the downtrend could be expected to resume, and another fall towards 1.3000 is still possible after consolidation.

On the upside, a break above 1.3470 resistance will signal completion of the downtrend from 1.3700, then further rise to 1.3550 area could be seen.

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 (EURUSD), 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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