EUR/USD intraday technical levels and trading recommendations for August 7, 2013
August 7, 2013 2:30 pm
Consolidation above the previously broken uptrend line and SMA 100 has been going on after the pair established a consolidation range between 1.3200 and 1.3300.
The weekly candlestick was a pin-bar representing hesitation, this came after 3 successive bullish weekly candlesticks after hiting 1.3300 which is considered an important resistance zone.
Moreover, on Monday the EUR/USD pair retreated from 1.3300 and fell to 1.3230 before pulling back upwards again to test 1.3300.
Next supply zone will be located around 1.3310-1.3333 corresponding to a long-term downtrend line depicted in the chart.
Congestion zone is established between 1.3200-1.3300 after touching Psychological Level of 1.3300, this may enhance a bullish pause. However, yesterday’s bullish engulfing daily candlestick enhances bullish continuation.
Previous congestion zone is more obvious in the 4H chart located between 1.3070-1.3175, a bullish breakout took place last week reaching up 1.3310 this week.
The euro is not expressing strong bullish steam after the bullish breakout took place last week. However, consolidation above 1.3230 (the recent bottom) favours the bullish direction towards 1.3333.
Intraday demand zone is located around 1.3175 then 1.3125, which corresponds to mid-range support, a breakdown of which will delay further bullish momentum in the short-term outlook.
The pair needs to get out of a price range of 1.3200 – 1.3300 in order to collect sufficient steam to move in the same direction of the breakout.
The material has been provided by InstaForex Company – www.instaforex.com
Consolidation above the previously broken uptrend line and SMA 100 has been going on after the pair established a consolidation range between 1.3200 and 1.3300.
The weekly candlestick was a pin-bar representing hesitation, this came after 3 successive bullish weekly candlesticks after hiting 1.3300 which is considered an important resistance zone.
Moreover, on Monday the EUR/USD pair retreated from 1.3300 and fell to 1.3230 before pulling back upwards again to test 1.3300.
Next supply zone will be located around 1.3310-1.3333 corresponding to a long-term downtrend line depicted in the chart.
Congestion zone is established between 1.3200-1.3300 after touching Psychological Level of 1.3300, this may enhance a bullish pause. However, yesterday’s bullish engulfing daily candlestick enhances bullish continuation.
Previous congestion zone is more obvious in the 4H chart located between 1.3070-1.3175, a bullish breakout took place last week reaching up 1.3310 this week.
The euro is not expressing strong bullish steam after the bullish breakout took place last week. However, consolidation above 1.3230 (the recent bottom) favours the bullish direction towards 1.3333.
Intraday demand zone is located around 1.3175 then 1.3125, which corresponds to mid-range support, a breakdown of which will delay further bullish momentum in the short-term outlook.
The pair needs to get out of a price range of 1.3200 – 1.3300 in order to collect sufficient steam to move in the same direction of the breakout.
The material has been provided by InstaForex Company – www.instaforex.com
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