EUR/USD intraday technical levels and trading recommendations for November 7, 2013
November 7, 2013 4:30 pm
The price zone of 1.3560-1.3600 represented a valuable supply zone that kept the price below for almost two months. The pair was showing some bearish rejection manifested in the daily candlesticks as seen on October 10, a bearish engulfing daily candlestick. However, lack of bearish follow-up was witnessed around 1.3480. Instead, a significant bullish rejection was expressed leading to a Flag continuation pattern.
According to the final readings of the European Statistical Office on Wednesday, the European inflation was 1.1% in September, in line with preliminary projections, it settled at 1.3% in August. This constituted to the recent bullish jump that took place on October 22.
Previous daily candlesticks represented indecision around 1.3800 strongly suggesting bearish retracement towards 1.3700 theb 1.3650 which took place shortly after.
Fundamentally, the massive decline in retail sales reflected sharp contraction in Italy, which witnessed the slowest decline in sales in two years during the previous month. Moreover, sales in France fell, while the rate of growth in Germany was the worst since the month of May.
The current price zone extending between 1.3550-1.3460 was a valuable demand zone. This zone failed to provide a strong support. Instead, bearish breakdown took place today with a quite strong momentum leading to breakdown of 1.3400 as well.
Persistence of the current breakdown below 1.3400-1.3450 will lead to the next support level around 1.3230 where price action should be watched. Otherwise, bullish reversal may take place to visit again 1.3460.
The material has been provided by InstaForex Company – www.instaforex.com
The price zone of 1.3560-1.3600 represented a valuable supply zone that kept the price below for almost two months. The pair was showing some bearish rejection manifested in the daily candlesticks as seen on October 10, a bearish engulfing daily candlestick. However, lack of bearish follow-up was witnessed around 1.3480. Instead, a significant bullish rejection was expressed leading to a Flag continuation pattern.
According to the final readings of the European Statistical Office on Wednesday, the European inflation was 1.1% in September, in line with preliminary projections, it settled at 1.3% in August. This constituted to the recent bullish jump that took place on October 22.
Previous daily candlesticks represented indecision around 1.3800 strongly suggesting bearish retracement towards 1.3700 theb 1.3650 which took place shortly after.
Fundamentally, the massive decline in retail sales reflected sharp contraction in Italy, which witnessed the slowest decline in sales in two years during the previous month. Moreover, sales in France fell, while the rate of growth in Germany was the worst since the month of May.
The current price zone extending between 1.3550-1.3460 was a valuable demand zone. This zone failed to provide a strong support. Instead, bearish breakdown took place today with a quite strong momentum leading to breakdown of 1.3400 as well.
Persistence of the current breakdown below 1.3400-1.3450 will lead to the next support level around 1.3230 where price action should be watched. Otherwise, bullish reversal may take place to visit again 1.3460.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: