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Morning technical analysis – 17 March 2014
While it may have lost some momentum recently, the euro is still looking bullish against the dollar. That said, we are getting warning signals that the trend may be about to change. For example, as you can see on the 4-hour chart below, we failed to make a new high on Friday. If the pair now trades below 1.3845, thereby making a new low, we would by definition have entered into a new downtrend. A close below this level would also mean the neckline of the head and shoulders, again on the 4-hour chart, has been broken. Based on the size of the formation, this would suggest a conservative target of 1.3755, shoulder to ... (full story)