EUR/USD weekly key support level at 1.3477 on a closing basis

The Spanish services PMI fell more than expected to 55.7 from 56.5, while the Italian services PMi rose to 52.9 from 51.5. The pair has been trading in a range between 1.3650-1.3588 levels. In yesterday's session, the pair was rejected at 200day SMA and again pushed to 1.36 levels. In the daily chart, the RSI is still consolidating at the lower levels. On the down side, we expect the strong support level at 1.3559 (50week SMA). In case it is broken, the pair is likley to drift towards 1.3410 (200week EMA) between support levels at 1.3520 (lower Bollinger band) and 1.3477.

On the upside, the resistance is at 1.3620 and 1.3650. Crosses above this level would push the pair to 1.3670 and 1.3734. A weekly close below the 1.3477 (channel support) is not good for long positions. Bulls should close above 1.3477 this week.

For intraday traders, the pair opened in a minor bullish note in Asia's trading session. It looks weak below 1.3598, so it may drift up to 1.3586 and 1.3560 levels. Below 1.3560 the weakness is likely to double and extend its fall up to 1.3520. The panic button would trigger below 1.3520 for 1.3477 and 1.3410/1.3380. On the upside, it the pair breaks the upper trend line (R1), it can spike up to 1.3670 and 1.37. The upside trend change would take place only after the pair closing above 1.367 and bulls back on track above 1.3735 levels.

Sell below 1.3477 target 1.3410 and 1.3380

Risky traders can buy at 1.3520 sl 1.3477

Short-term: sell on the rallies