EUR/USD
The pair has been trading in a down trend for the last 2 weeks. it broke two important support levels. During the last week, the pair broke the short-term trend reversal key level at 1.367, but well managed to pull back from the low and close above it. It's a good sign for this week. For the week May 19-23, the trading range is framed between 1.3643 and 1.3775. If the pair breaks the down side range, it will drift up to 1.3545 and 1.3477 levels. On the up side, the pair trades above the 1.3775 levels, it will pull back to 1.3820, 1.3860 and 1.39 levels.
Weekly key support level is at 1.367 on a closing basis. Resistance is at 1.3775 levels.
As of now, the pair started this week on a bullish note. In Asia's trading session the pair is trading at 1.3697 levels. For the last 3 trading days, the pair has been facing strong resistance at the 23.6 fib level (1.3732) (it's an initial resistance marked as R1 in the below chart), once the pair crosses R1, it will spike up to 1.3775 levels marked as R2, which is a major weekly resistance level for the bulls to make 1.3815 levels which is a 50-day SMA, later 1.3865 and 1.39 will be possible for this week.
On the down side, the pair has strong support levels at 1.364, in case of a break of this, 1.36 is the trend change level for 1.35, and 1.3475 is an open target.
Recommendation- cmp 1.3698.
"Buy the dip" is the best strategy.
Safe traders, buy above 1.3732 for 1.3763, 1.3775, 1.38, 1.3811, 1.3844 and 1.39.
NOTE- A day close below 1.364, does not favor bulls.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Weekly analysis and recommendation for EUR/USD for May 19-23, 2014 . Thanks for your support on Weekly analysis and recommendation for EUR/USD for May 19-23, 2014
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