Technically speaking, the EURUSD has been a mess.  Failing to breakthrough strong support at 1.3600 – which was formed by an hourly descending trendline at the 1.4245-1.3788 bearish decline – the currency pair has dropped to trade at 1.3517 since the start of the session.  But, signals are emerging of a rebound in Europe’s single currency.

Aside from technical support that is stemming from the November 10th session low of 1.3504, there is plenty of reasons to be long the EURUSD from this level.  Stochasic oscillator readings have just dipped into oversold territory at 14.26, as MACD is displaying a steepening bullish convergence in the 15-minute timeframe.  The current support of 1.3500 is also coinciding with the 100 simple moving average in the aforementioned timeframe – buoyed by the lower Bollinger band.

These strong barriers are likely to hold, offering Euro buyers some momentum heading into the close.  As a result, we are looking to keep an eye out for a retest of double top resistance at 1.3552 (November 16th) in the short term.

Market volume is a bit higher than average, but still remains below preferable liquidity levels – which may help the currency’s case for a mid-afternoon advance.