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EURUSD : Will the Pair Hold its Gains or Trim ?

EUR is rising against its major counterparts ahead of testimony by ECB President Mario Draghi later today at 1:00 PM EDT. However EUR posted sharp declines last week after the Portugal’s largest bank showed some fiscal instability raising concerns among investors over European economy. However the concern faded after the central bank said that the Banco Espirito Santo is able to fulfill its capital requirements.

(EURUSD : 4 Hour Chart)

Looking at the 4 hour chart of EURUSD, the pair is surging above 100 day SMA and seems like consolidating between the two contracting trend lines. The 50 day SMA crossing below the 100 day SMA is giving a bearish signal according to which the pair might decline finding resistance from the falling resistance trend line and continue its decline by falling below the rising support trend line. Also 1.3638 is the key resistance at which the pair experienced resistance and support couple of times. Now the 50 day SMA is contracting towards the 200 day SMA which shows that the bearish trend persists on the pair.