Overview:
- The EUR/USD's support was broken and turned to resistance on the 1st of November 2013, thus the pair has already formed strong resistance at 1.3644. Moreover, after it could not close above it and started indicating a bearish market, the price has been placed below 127.2% Fibonacci within two weeks in the 4H chart.
- Additionally, it should also be noted that the price has still been trapped between 61.8% Fibonacci retracement levels and 38.2% (in H4 chart). Equally important is that the RSI and the Moving Average (100) are still calling for downtrend.
- Therefore, the market indicates the bearish opportunity at the level of 1.3644 in H4 chart with the first target of 1.3606 and further towards 1.3563 (the weekly pivot point). On the other hand, if the price closes above the resistance then the best location for placing a stop loss should be above 1.3685. However, the level of 1.3566 will set a strong support for December 4 - 6, 2013 then it is of the wisdom to long buying at 1.3566 with a first target the weekly pivot point at the level of 1.3600 then it will continue towards the resistance at 1.3640 in order to test it.
