EUR/USD: Technical analysis for February 7, 2013
The EUR/USD pair has broken the support level and turned towards the resistance level of 1.3595 last week. Therefore, the pair has already formed a strong resistance at 1.3595 and the strong resistance is still set at the level of 1.3595. Moreover, it failed to close above 1.3597 (100% of Fibonacci levels’ retracement / look at the chart) and started showing a bearish reaction at this level. It should be mentioned that these levels coincide with strong levels for bears in the H1 chart. The pair has also formed strong resistance at the level of 1.3595. The pair will move downwards, it is convincing. The structure of the downside movement does not look corrective and is indicating a bearish opportunity below 1.3600. This can be a good sign for Sell deals below 1.3600 with the first target at 1.3560 initiating an uptrend in order to continue the bearish trend towards the point of 1.3530 and further to 1.3500. The weekly pivot point is 1.3587. If the level of 1.3587 is not broken, the pair will go downwards to support 1.3500. However, it should also be noted that the price is still between 1.3580 and 1.3555, as the last strong support level (1.3465) is still able to start an uptrend at this level. Thus, the market indicates a bullish opportunity at the level of 1.3500/13565 in the M15/H1 chart with the first target at 1.3545 and continues towards 1.3590 (weekly pivot point).
Note: Resistance is at 1.3595. Support is at 1.3500.
If the trend is ascending, then the strength of the currency will be defined as follows: EUR is trending up and USD is trending down.
Most traders use the Fibonacci retracement to accurately determine the psychological support and resistance levels.
Stop loss should never exceed your maximum exposure amounts.
The market is highly volatile as usual when the last day had a huge volatility.
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