EURUSD Analysis: Ahead of ECB: The Euro broadened its trading range against the US dollar from last week reaching a very difficult resistance level of 1.37. The daily eurusd chart below shows a very clearly defined modal platform at the 1.37 level indicating a major resistance level. (modal point is the most widely traded price in any given day, modal platforms are two or more consecutive days with same or closely similar modal points). The modal platform is the place where most short positions have been entered over the past month (note: modal points are the total of all long and short positions).
We duly note that the current upside was stopped precisely on the 1.37 platform yesterday an also making a lower modal point. We take this along with the price action below ichimoku cloud cover and we are strongly bearish bias. We will need to see a close above 1.37 to break the downward bias.
To the downside we see a similar, yest weaker support (modal) platform at 1.36. Below 1.3570 we see next support at 1.35o3 (june 5 low).