The EUR/USD’s resistance was broken and it turned to support since yesterday; thus, the pair has already formed strong support at 1.3420 (at this level, the weekly support 1 will be formed) and a minor support will be set at the level of 1.3467. Moreover, it could not close below 1.3441 (23.6% Fibonacci retracements levels) and started indicating a bullish market, as well as the price placed above 23.6% Fibonacci for five days. Additionally, it should also be noted that the price has still been trapped between 61.8% Fibonacci retracement levels and 38.2%.
Equally important, the RSI and the moving average (50) are still calling for uptrend. Therefore, the market indicates a bullish opportunity at the level of 1.3503 in H1 or H4 chart with the first target of 1.3600, and continues towards 1.3630. On the other hand, if the price closes below the minor support then the best location for placing a stop loss should be below 1.3415; thus, the price will fall into the bearish market in order to go further towards the strong support at 1.3420 to test it again. Furthermore, it should be noted that the level of 1.3400 is going to form a double bottom.
However, the resistance for November 22, 2013 will be set at the level of 1.3633. So, it will be wise to sell at this level with the first target at the weekly pivot point 1.3455, and it will continue towards 1.3443.
The material has been provided by InstaForex Company – www.instaforex.com
The material has been provided by InstaForex Company – www.instaforex.com
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