FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik observes that EUR/USD climbed to 1.3407 at the beginning of the European session, in a short squeeze interpreted as profit taking ahead of the weekend.
"Technically, the 4 hours chart shows current candle opened above the roof of the daily descendant channel, while price also stands above a still bearish 20 SMA."
"Indicators in the same time frame, head higher above their midlines, supporting some further advances for the day: steady gains above 1.3400 may see the pair advancing up to 1.3440 price zone, strong static resistance level."
"Sellers may surge on the area halting the advance yet if short term stops above it get triggered, an approach to 1.3500 is not unlikely."
"Immediate support now comes at 1.3360, where the chart shows several intraday highs and lows: some downward acceleration through the level should lead to a retests of the lows of 1.3330 and even lower down to 1.3295. "