$EURUSD poised for reversal but needs confirmation 06-05-2014

The ECB announcement reversed the selloff in the Euro today but whether this is the beginning of a new leg up is uncertain. We need to see confirmation of the hammer candlestick on the chart and a little more follow through on the stochastic. The biggest challenge from a technical perspective facing the Euro's ability to break above 1.40 is all the congestion at levels in between. Fundamentally a higher Euro isn't good for a Eurozone economy still struggling to produce positive GDP numbers. Last 4 quarters are all positive but just barely: .3, .1, .3, .2 - nothing to get enthused about.