FXstreet.com (Barcelona) - Euro has remained trading in a flat range from 1.3480 to 1.3680 for the last four days, and according to the Saxo Bank technical analyst John Hardy, such a consolidation period dilutes the strength of the previous momentum: Our general rule of thumb is that four days of range trading will kill the momentum of the previous impulse and heighten the unpredictability of the environment and raise the odds that a reversal could occur.

In that sense, Hardy observes 1.3450 as key trigger for bears: Yesterday saw a bullish reversal from an attempt below the lower end of the range and sets up the 1.3450 area as the key trigger for bears.

In case of an upmove, Hardy points out to 1.3737: To the upside, we look at the recent 1.3737 high and the rapidly falling 200-day moving averages as the key resistance levels for this move.