In the last two days of this week, the negative data from US effected US Index hard and down trend of USD Index lead all the major parities direction. The short term buyers took position and got EURUSD to test 1.1390. Yesterday EURUSD rised up to 1.1382 and currently it is testing 1.1390 again.
For the short term USD Index is still in bearish pressure and there is no signal for a reversal yet. Below 94.62 negative stress would be pushing USD Index down still. If it breaks 93.35 support, the next target would be 91.53 which is 200 days EMA of USD Index. Otherwise 94.62 may be seen as a reaction to the current trend
As we see on 4Hrs chart, EUR/USD is at a very critical resistance to pass. Over this level, there would be much more way to go. 1.1390 is the major support which was tested before and this time making double top. This level was the first reaction level to the sellers in long term down trend which started in May 2014.
You can see this level more clear in daily chart. Especially according to the trend of USD Index, 1.1290 is the support level. If EUR/USD stays above this level, 1.1390 would be tested and would try to break this level very hard. After than 1.1425 and 1.1468 would be seen easily.
Our view is, up trend continues.1.1390 would be passed. 1.1425 would be tested.