EUR/USD at important support

EUR/USD fell to the support area of $1.3685 (50% of the decline from December to January, short-term support line and lower Bollinger band at H4).

Euro tumbled on the disappointing PMI figures signaling that the euro zone’s recovery isn’t doing that well. Investors might reconsider speculation about the ECB easing policy.  

Still the pair’s above the daily Ichimoku Cloud. MACD is in the positive area. The bears have to break below $1.3685 to achieve more declines. However, if the bulls fail to break above $1.3740, we’ll consider joining the sellers.       

For the rest of the week the pair will be driven by US data. Further support lies at $1.3670, $1.3650, $1.3635 and $1.3620 (100-day MA). Resistance is at $1.3730/40 and $1.3780.

Chart. H4 EUR/USD

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