FX.co ★ Weekly forecast of EUR/USD for April 22-25, 2014

EUR/USD remains in downtrend from 1.3905, the rise from 1.3787 could be treated as consolidation of the downtrend. Further decline would likely be seen, and the target would be at 1.3740 area. Resistance levels are at 1.3865 and 1.3905, only break above these levels could signal the completion of the downtrend. In Asia's trading session, the pair is taking support at 50SMA and trading at 1.3796 levels. The pair is all set for a free fall once the pair breaks the 1.3780 for targets 1.3762, 1.3737, 1.37 and 1.3665 levels on positional basis. In the daily chart, RSI is not favoring longs. A day closes below the (50SMA) 1.3789, the bulls submit the pair to bears. On the upside, the pair is facing resistance at 1.3831 and 1.3864 levels. We are not in an upbeat until the pair trades above the 1.3906. We recommend a sell on rallies or sell below 50SMA. A new bull run will emerge when the pair crosses the 1.40 levels, until it trades above, we recommend a sell on rallies.

Intraday-

The pair is taking support at 1.3780 level, bulls can take the pair up to 1.3820 and 1.3834 levels. The level 1.38 is the key indicator for today's trading session. Bulls will have upper hand only above 1.38. Bears will gain strength only below 1.3780. So it's clear, until we get a break on the upside 1.38 or downside 1.3780, we don't get clear trend. Once the pair breaks the 1.3780, it will drift up to 1.3762 and 1.3740 levels immediately. On the higher side 1.3833 and 1.3850 are the strong resistance levels.