EUR/USD fails to break downtrend at 1.3960

The euro has once again failed to break through the long term trendline that began in 2008 suggesting a bearish outlook for the currency, says Max Knudsen of ADS Securities. As such, the outlook remains negative whilst the currency remains below 1.3900.  In the shorter-term the formation of a bearish engulfing pattern on the daily chart suggests the end of the recent bull run. Possible targets are around the 1.3600 area.