EUR/USD Trading Above 4-Hour EMA 50

EUR/USD (4-hour chart as of October 7, 2013) reached a high of 1.3645 on October 3, which is right around the projected target of the flag continuation pattern (as shown on chart). Price then retreated from 1.3645 to test the 4-hour EMA 50 that has been acted as strong support since the flag pattern breakout on September 27. Price bounced off the EMA 50 on October 4 and reached a high of 1.3590 before turning down to test once again the EMA 50 today.

Bullish if price can hold the 4-hour EMA 50:

1^st resistance: 1.3590/1.3605

2^nd resistance: 1.3630/45

3^rd resistance: 1.3710

Bearish if price breaks down below the 4-hour EMA 50:

1^st support: 1.3540

2^nd support: 1.3505

3^rd support: 1.3475/60