Posted on February 10, 2015 by the XM Investment Research Desk at 8:11 am GMT
EURUSD has been consistently closing above the key 1.1300 level on the daily chart. The consolidation pattern continues although the range narrowed yesterday. To the upside 1.1400 is seen as immediate resistance, provided by the tenkan-sen line.
Strong resistance lies at 1.1679 which will limit upside moves to bring a resumption of the downtrend. The pair has been making lower peaks and lower lows since May 2014.
In the bigger picture, the underlying market bias remains bearish as EURUSD remains below the Ichimoku cloud. A break of minor support at 1.1261 (the low of the recent range) will give scope for a retest of 1.1096, the January 26 low. Below this level would see another leg lower to target 1.0762.