The EUR/USD pair has broken the support level and turned towards the resistance level of 1.3330 yesterday. Therefore, the pair has already formed a minor resistance at 1.3330 and the strong resistance is still set at the level of 1.3395. Moreover, it failed to close above 1.3403 (100% of Fibonacci levels' retracement) 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 1.3395. 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 1.3400. This can be a good sign for Sell deals below 1.3400 with the first target at 1.3350 initiating an uptrend in order to continue the bearish trend towards the point of 1.3330 and further to 1.3250. The weekly pivot point is 1.3326. If the level of 1.3326 is broken, the pair will go downwards to support 1:1.3248. However, it should also be noted that the price is still between 1.3333 and 1.3290, as the last strong support level (1.3250) is still able to start an uptrend at this level. Thus, the market indicates a bullish opportunity at the level of 1.3250 in the H1 chart with the first target at 1.3330 and continues towards 1.3395 (weekly R1).
Note: Resistance is at 1.3395. Support is at 1.3330/1.3250.
Observation(s):
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.
Technical analysis:
R3: 1.3542
R2: 1.3473
R1: 1.3395
PP: 1.3326
S1: 1.3248
S2: 1.3179
S3: 1.3101
If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.
The material has been provided by Instaforex Company - instaforex.com
For detail explanation and best discovery on market trends you may visit via EUR/USD technical analysis for January 23, 2013 . Thanks for your support on EUR/USD technical analysis for January 23, 2013
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