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Forex pairs in this Article » EUR/USD (Barcelona) - The EUR/USD could still be setting up for more downside with a target of 1.3615. However, if the short-term “correction resistance” at 1.3755 is conquered, the bears will have to throw in the towel and live to fight another day.

EUR/USD traders moving the cross with no help from data Friday

Slow holiday volumes allow for out-sized short-term moves if the interest piles up on one side of the trade temporarily. The EUR/USD started the session off at 1.3689 and is now trading just off of session highs at 1.3739. Today’s upside move has not yet taken the cross over any key resistance levels, but is symptomatic of a holiday trading environment (moving on no news simply because there is no one to take the other side of the trade right now).

Technical outlook for EURUSD

Technicians say the EUR/USD appears to be in the fourth wave of a five wave downside move – either wave “A” of a consolidation or wave “i” of a larger five wave sequence lower. The downside target for the fifth wave of this sequence will be 1.3615 – with 1.3594 being the very max downside in the short-term. Resistance for the current (fourth) wave comes in at the horizontal line of 1.3755.
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