Overview:
- A bearish outlook of the EUR/USD pair on the 1st of October 2014. So, according to the previous events, the EUR/USD pair has still been moving between 1.2636 and 1.2571. The prices of 1.2636 and 1.2571 will represent the ratio of 50% Fibonacci retracement levels and the double bottom respectively. It should be noted that the key level is set at the level of 1.2620. Equally important, the resistance will be formed at the area of 1.2620 / 1.2636 levels. As it is know, history will probably repeat itself at this level again. Therefore, it will be a good sign to sell below 1.2620 / 1.2636 with the first target of 1.2571 in order to retest the double bottom again. Moreover, it will call for a downtrend to continue its bearish movement towards 1.2536. On the other hand, the stop loss should never exceed your maximum exposure amounts, consequently the stop loss should be placed above the last bearish wave (1.2640) at the price of 1.2675.
