EUR/USD Forecast May 28, 2014, Technical Analysis

The EUR/USD pair fell during most of the session on Tuesday, but found the 1.36 level supportive yet again. Because of this, it appears that the market is ready to grind sideways, as this area although supportive, isn’t necessarily a major support area. Ultimately though, we believe that a bounce from here would probably find quite a bit of resistance at the 1.37 handle, or perhaps accelerating bearishness below the 1.36 handle. At that point time, the market should go down to the 1.35 level, where we see even more significant support. As far as buying is concerned, we have no interest in going that route until we get above the 1.3750 handle.