FX.co ★ Technical analysis of EUR/USD for March 21, 2014

EUR/USD has given up after struggling for many days and divergences. It made an attempt to go above the falling trendline from the 2008 high and failed forming a 5-month long ending diagonal which might mean a major trend reversal for the euro that has been rising since July 2012. 1.381 is the near-term support, which was broken at yesterday's trading session, so we would expect it to go to the lower trendline of the wedge at 1.36 within intermediate supports at 1.37 and 1.3643. In our previous report we recommended to go short with sl at 1.396.

Intraday-

In the H4 chart, the pair is taking support at 1.3774, below it, 1.3749 is the immediate support. RSI is indicating positive signs in the both H1 and H4 charts. We expect a pullback towards 1.3797, 1.3824, 1.3850, and 1.38825.

On the downside, if the pair breaks 1.37749, it looks weak and immediate support exists at 1.3749. In case a move below 1.3749, next support is at 1.3721, 1.37.