FXStreet (Bali) - According to Valeria Bednarik, Chief Analyst at FXStreet, as long as EUR/USD is kept below 1.3430/40 area, the upside should remain limited.
"The EUR/USD traded within a 70 pips range this Wednesday, down to 1.3342 early Europe on the back of weak EZ industrial production data, advancing suddenly up to 1.3414 on disappointing US Retail Sales, fat on July. But at the end of the day the pair stands right where it started, with investors now setting aside ahead of European GDP final readings early Thursday."
"Technically, the strong intraday advance has barely affected the wider picture, as price stalled below 1.3430/40 area, level that capped the upside for almost 3 weeks already."
"The hourly chart shows price closing the day below its moving averages, while indicators approach their midlines, having erased all of their overbought readings. In the 4 hours chart indicators retrace from their midlines extending into bearish territory, as latest candle opened below a flat 20 SMA."
"As long as below mentioned 1.3430/40 area, the upside will remain limited, while a break below 1.3330 lows should trigger stops and therefore fuel the dominant bearish trend."