The EUR/USD closes above the 1.3700 level.

The Euro dropped like a rock at the beginning of the European session due to the disappointing GDP readings out of the Euro Zone, but the price bounces to the upside after touching the 200 period exponential moving average on the daily chart as shown on the image below.

We can clearly see that the daily candle has left a long lower shadow and the price has closed above the 1.3700 level. We were expecting the 1.3700 to act as a resistance, but up to now the price has stayed just above that level. The long lower shadow on the daily candle is telling us that the bulls came strong into the market and bid the price up. The real body of the candle is relatively small and this is an indication of indecision, but at the same time is showing us weakness of the bearish trend. Therefore, if tomorrow we get a bullish daily candle, then we may see a change in direction to the upside for next week.