Forex: EUR/USD tests 1.4635

The Euro is trading sideways against the Greenback during the European session between 1.4600 and 1.4635 after falling 160 pips from 1.4719 to bounce at 2-week low at 1.4560. Currently the pair is testing 1.4635 and trading 0.45% below today's opening price action at 1.4704.

Last week, pair closed with 0.23% weekly losses after opening at 1.4693 on Monday and close at 1.4669 on Friday. Pair reached 1.4845 as intra-week high, also 1-year high, and 1.4611 as minimum. The latest was the first negative week in the last four.

On the whole, though biased to the upside medium term ,EUR is now being challenged by corrective weakness: “The bigger test if continued corrective declines are seen lies at the 1.4446 level, its Aug 09 high. That level which now coincides with its MT rising trendlineshould provide a strong support and push the pair back up again. On the other hand, in order for its medium term uptrend to be triggered and its present corrective weakness cut short, a return above the 1.4844 level must occur putting the next upside at the 1.4875 level, representing its Sept 21’09 high ahead of the its psycho level at 1.5000 and then the 1.5082 level, its Aug 10’08 high.”