FX.co ★ Technical analysis of EUR/USD for March 31, 2014

Technical outlook and chart setups:

1. The EUR/USD has resumed its retracement as was expected earlier. The drop from 1.3960 is impulsive and correction was due. Please note that this rally needs to be sold around 1.3850/60 levels. Recommendations for now is to remain flat and wait to sell higher.

2. Immediate resistance is seen at 1.3850, followed by 1.3960, while supports are spread through 1.3700/20, followed by 1.36 and lower respectively.

3. The structure indicates that EUR/USD should correct itself towards 1.3850 levels. Bears are expected to take back control from those levels. The expected downside extensions are 1.35 and 1.32.

Trading recommendations:

Sell around 1.3850, stop is at 1.3970, target is open.

Good luck!