In a slow Easter Thursday, the EUR/USD advances above the 1.3850 level, triggering some stops and nearing the weekly high of 1.3862. Early data shown German producer prices for industrial products fell by 0.9%, compared to an year earlier, but the increasing deflationary pressure has hardly affected the currency: market players are indeed waiting for the ECB to act before turning bias in the pair, and will remain buoyed as long as is just talking.
Quoting a few pips below the weekly high of 1.3862, the pair seems aiming to fill the weekly opening gap around 1.3890, with the 4 hours chart showing price above its 20 SMA that losses the downward potential and turns flat around 1.3820, while indicators show a timid bullish bias right above their midlines. Therefore, renewed price acceleration beyond mentioned weekly high should lead to an advance up to 1.3880/1.3900 area. Further gains seem unlikely for today, yet a daily close above 1.3850 should keep the pair in the bullish side for the upcoming days.
Retracements now will find support in 1.3850 first, followed later by 1.3820 area, while only below 1.3780 the pair can turn negative, although chances are quite limited in the short term.