The EUR/USD is certainly under a lot of pressure fundamentally speaking. The Cyprus debt issue continues to weigh heavy on the currency, which has been impressively resilient so far. That said, it really is only a matter of time before the currency of the EU begins to tumble under the pressure and this could be that tipping point. Friday the pair printed a 'Hangman' formation on the daily chart as part of an expanding wedge pattern at a key resistance level of 1.3100. Although it might appear Bullish at first glance, the pattern actually suggests lower prices ahead and a break of Friday's low at 1.3036 will confirm a Bearish tone. After the break, support is seen at 1.3000 again, a psychological level in addition to being the Weekly S1. Below 1.3000 is a gap of another 100 pips or so down to the Monthly Pivot/Weekly S2 at 1.2900 on the way down to a possible retest of February's lows at 1.2750. If however we close above Thursday's High at 1.3137 the Bearish pattern will be nullified and we can expect at least a test of the resistance level from last December at 1.3173 before heading up to the Monthly R2 at 1.3283 and lows of January.
