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EUR/USD Slowing Down Above 1.3520

When you look at the 1H EUR/USD chart, you see a market that is only slightly bearish, but has been trading sideways for at least a week.


(eurusd 1h chart)

The moving averages were all clustered together, reflecting a market in sideways mode. Only this week is is spreading apart in a bearish manner. Basically, don't be surprised by a bullish attempt toward 1.36 because the bearish momentum in the short-term is weak.

In fact, the market retains a bearish technical outlook in the 1H chart if price fails to push back above 1.36. In this scenario, the focus remains on the 1.35 handle down to the 1.3475 low on the year.

In the 1H chart, there is a near-term consolidation range between 1.3520 and 1.3560. A break above 1.3560 exposes the 1.36 area, but the outlook would remain bearish as long as price holds south of this level. 

A break below 1.3520 continues the pressure on 1.35 and 1.3475.