EUR/USD
The pair has been in a downtrend from 1.399 levels. In the weekly chart, the pair broke the support trend line and closed below it. This week the pair opened and was trading below the lower trendline, which is bearish. However, it failed to break the previous week's low, which is a bit positive sign this week. This week's key level was placed at 1.3746 (last week's low). Once the pair breaks this level, it will rise to 1.3696 and 1.367 levels. This is an inital support which will act as a short-term trend reversal level. On the bear front , if the pair breaks the 1.367 level, the trading in May will become rough in coming sessions, thus attracting the lower targets at 1.3536 (50weekly SMA), 1.3480 and 1.34 (200weekly EMA).
Weekly key level- 1.3746 support, 1.3825 resistance
Monthly key level- 1.367 support, 1.40 resistance
For this week May of 13-16, the upside resistance was placed at 1.3825 (50daily SMA). Currently, the pair is trading below it, and for 2 days in a row the pair closed below the 50SMA, which is a highly bearish indicator. The bulls will take charge provided that EUR/USD closes above the 50SMA. To sell on the rally is the best strategy.
Intraday
The pair has been trading in a range between 1.3746-1.3775. It opened on a bull note at 1.3759. The RSI in the h4 chart is indicating that the pair is likely to pull back from the oversold levels. EUR/USD has buyers zone at 1.3737 level and below. So it is seen to fall to 1.37 and 1.3673. On the upside, the inital resistance level is placed at 1.3775 (yesterday's high, April 30 low and previous swing low). The bulls seem to be back on track only above this key level. Having crossed it, the pair is likely to fly up to the 1.3825 level, which is the next crucial level. First, the pair is expected to fall down before further moving up.
Recommendations- cmp 1.3758
Safe traders buy above 1.3775 targets 1.38 and 1.3825
Sell below 1.3737 targets 1.37 and 1.367
Buying on dip is the best strategy for 1-2 days
Adopt a strategy and trade safe.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via EUR/USD medium-term forecast and intraday recommendations for May 13, 2014 . Thanks for your support on EUR/USD medium-term forecast and intraday recommendations for May 13, 2014
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