EUR/USD intraday technical levels and trading recommendations for October 28, 2013
October 28, 2013 4:15 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, European inflation hits 1.1% in September, according to preliminary projections it is settled at 1.3% in August. This constituted to the recent bullish jump that took place on October 22.
The price level of 1.3560 is the upper limit of the most recent congestion zone. That is why, persistence of the current breakthrough and fixation above 1.3715 enabled the pair to reach 1.3800.
After hitting 1.3700 at the end of last week, investors were waiting for US releases in order to define a clearer trend in the pair until today when the US non-farm payrolls release was a great disappointment as NFP grew by only 148K in September, following the August increase of 193K, this lead to the current breakthrough above 1.3710. However, the situation remains nearer to profit taking towards 1.3650-1.3700 initially.
The projection target of the depicted Flag pattern is roughly located around 1.3820.
Although the pair was expected to need some time to achieve such a target having important levels on its way, daily closure above 1.3710 allowed quick achievement for this target.
Previous daily candlesticks represent indecision around 1.3800 strongly suggesting bearish retracement towards 1.3700.
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, European inflation hits 1.1% in September, according to preliminary projections it is settled at 1.3% in August. This constituted to the recent bullish jump that took place on October 22.
The price level of 1.3560 is the upper limit of the most recent congestion zone. That is why, persistence of the current breakthrough and fixation above 1.3715 enabled the pair to reach 1.3800.
After hitting 1.3700 at the end of last week, investors were waiting for US releases in order to define a clearer trend in the pair until today when the US non-farm payrolls release was a great disappointment as NFP grew by only 148K in September, following the August increase of 193K, this lead to the current breakthrough above 1.3710. However, the situation remains nearer to profit taking towards 1.3650-1.3700 initially.
The projection target of the depicted Flag pattern is roughly located around 1.3820.
Although the pair was expected to need some time to achieve such a target having important levels on its way, daily closure above 1.3710 allowed quick achievement for this target.
Previous daily candlesticks represent indecision around 1.3800 strongly suggesting bearish retracement towards 1.3700.
The material has been provided by InstaForex Company – www.instaforex.com
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