EUR/USD intraday technical levels and trading recommendations for December 24, 2013
December 24, 2013 3:15 pm
The price zone of 1.3400-1.3460 represented a valuable supply zone that kept the price below for few months. However, a significant bullish support was present around 1.3100 leading to a bullish breakout pattern.
Readings of the European Statistical Office disclosed three weeks ago, the European inflation was at 1.1% in September, in line with preliminary projections, while it settled at 1.3% in August. This constituted to the recent bullish jump that took place on October 22.
Around 1.3800, previous daily candlesticks represented indecision initiating a bearish retracement towards 1.3450 which failed to provide strong support, and then 1.3280 was tested shortly after.
The price zone of 1.3280 – 1.3300 provided strong demand for the pair pushing it higher above 1.3400 – 1.3450 (prominent technical levels). Persistence of the current bullish channel to push above 1.3450 level allowed the pair to reach the next supply levels around 1.3650 then 1.3750 respectively.
Bearish rejection was witnessed last week around 1.3790 (141.4% Fibo Expansion). For the current bearish impulse, as mentioned on Wednesday, daily closure below 1.3750 was a must to pursue further targets around 1.3680 then 1.3650 where the lower limit of the ongoing bullish channel is located.
Bullish continuation is more enhanced today. The EUR/USD pair will probably be targeting 1.3750 initially as long as the bulls are defending the lower limit of the ongoing channel around 1.3650-1.3600. Bullish daily candlestick was expressed on Friday enhancing this bullish scenario.
Fundamentally, U.S. Durable goods orders exceeded expectations during the month of November according to official data that appeared today. This enhances the current bearish direction of this pair which is manifested in the current failure to collect enough momentum to remain moving within the ascending bullish channel.
Daily closure below 1.3620 invalidates this short-term bullish view.
The material has been provided by InstaForex Company – www.instaforex.com
The price zone of 1.3400-1.3460 represented a valuable supply zone that kept the price below for few months. However, a significant bullish support was present around 1.3100 leading to a bullish breakout pattern.
Readings of the European Statistical Office disclosed three weeks ago, the European inflation was at 1.1% in September, in line with preliminary projections, while it settled at 1.3% in August. This constituted to the recent bullish jump that took place on October 22.
Around 1.3800, previous daily candlesticks represented indecision initiating a bearish retracement towards 1.3450 which failed to provide strong support, and then 1.3280 was tested shortly after.
The price zone of 1.3280 – 1.3300 provided strong demand for the pair pushing it higher above 1.3400 – 1.3450 (prominent technical levels). Persistence of the current bullish channel to push above 1.3450 level allowed the pair to reach the next supply levels around 1.3650 then 1.3750 respectively.
Bearish rejection was witnessed last week around 1.3790 (141.4% Fibo Expansion). For the current bearish impulse, as mentioned on Wednesday, daily closure below 1.3750 was a must to pursue further targets around 1.3680 then 1.3650 where the lower limit of the ongoing bullish channel is located.
Bullish continuation is more enhanced today. The EUR/USD pair will probably be targeting 1.3750 initially as long as the bulls are defending the lower limit of the ongoing channel around 1.3650-1.3600. Bullish daily candlestick was expressed on Friday enhancing this bullish scenario.
Fundamentally, U.S. Durable goods orders exceeded expectations during the month of November according to official data that appeared today. This enhances the current bearish direction of this pair which is manifested in the current failure to collect enough momentum to remain moving within the ascending bullish channel.
Daily closure below 1.3620 invalidates this short-term bullish view.
The material has been provided by InstaForex Company – www.instaforex.com
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