Weekly pivot point is 1.3241.
Overview:
The EUR/USD pair has broken the support level and turned towards the resistance level of 1.3470 last month. Therefore, the pair has already formed a strong resistance at 1.3470. Moreover, it failed to close above 1.3470 (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 1.3470. 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 1.3470. This can be a good sign for Sell deals below 1.3470 with the first target at 1.3410 initiating an uptrend in order to continue the bullish trend towards the point of 1.3380 and further to 1.3240. The weekly pivot point is 1.3241. If the level of 1.3213 is broken, then the pair will go downwards to these targets. However, it should also be noted that the price is still between 1.3415 and 1.3330, as the last strong support level (1.3240) is still able to start an uptrend at this level. Thus, the market indicates a bullish opportunity at the level of 1.3240 in the H1 chart with the first target at 1.3310 and continues towards 1.3465 (weekly R1).
Note: Resistance is at 1.3470. Support is at 1.3240.
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: 1.3815
R2: 1.3590
R1: 1.3466
PP: 1.3241
S1: 1.3117
S2: 1.2892
S3: 1.2768
If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.
