EUR/USD
ECB President Mario Draghi is concerned about deflation in the euro zone. The bank's main aim to bring back inflation towards the bank target at 2%, but currently the annual rate of inflation is 0.7%. The euro has drifted lower against USD for three months.
Weekly-
The pair made a low at 1.3616, as of now, it looks like a double bottom, For the rest of the week it should hold the low at 1.3616 levels. If the pair breaks the weekly support, then it will extend its fall to 1.3562-1.3550 levels immediately, later 1.3480 will be on the cards. Until the pair crosses 1.3735 on the downside, 1.34 is an open target with stronger support at 1.3616/1.36 and 1.3550 levels.
Daily-
In the daily chart, the pair made a double bottom and was unable to cross Friday's high at 1.3659. Today the pair is taking support at 1.3636, 1.3620, 1.3616 and the last bulls' hope is at 1.36 levels. We are completely negative below the 1.36 levels. On the upside, the pair has initial resistance at 1.3659, above this, it will fly up to 1.3688, 1.3723, 1.3757 and 1.3775 levels. The daily momentum oscillators are indicating a positive divergence representing the limited downfall at the cmp.
Hourly-
For intraday purpose, the pair looks good only above the 1.3654 levels, until it crosses it, the pair favors a slide again to the support levels 1.3634, 1.3616 and 1.36 levels. In case of a break below 1.36, it will slide to 1.3565 and 1.3550 levels. We recommend to go long only above 1.3655 for safe traders' targets at 1.366, 1.3680 and 1.3715 levels. Strong momentum is only above 1.3680 for 1.3735 and 1.3750.
RECOMMENDATIONS- cmp 1.3644.
Safe traders- buy above 1.3655.
Risky traders can buy at cmp 1.3644 for targets 1.3680 and 1.3715.
Sell below 1.3585 for 1.3565, 1.3550, 1.3477 and 1.34.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Technical analysis of EUR/USD for May 27, 2014 . Thanks for your support on Technical analysis of EUR/USD for May 27, 2014
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