EUR/USD weekly technical levels for December 2 – 6, 2013

Weekly technical levels:

Intraday trading recommendations:

EUR/USD: According to the previous events, the price has still been trapped between 1.3570 and 1.3520. The level of 1.3571 will indicate strong resistance; moreover, the price will form a new top at this level of 61.8% Fibonacci retracement levels. Therefore, it will be wise to sell at 1.3571 (short term) with the first target at 1.3520, then it will continue towards 1.3489 in order to test the last week bottom. It should note that double bottom will be set at the level of 1.3489 (00% Fibonacci retracement levels).

Observations:

If the trend is buoyant, then the strength of the currency will be defined as following: EUR is in uptrend and USD is in downtrend.
Fibonacci retracement is used for determining accurate psychological levels of support and resistance. The period of time should be taken into account.
Fibonacci is in a range trade; it looks like the trend is trapped moving up or down. If you sell or buy in the long-term period, you will surely lose your profit.

Notes:

Stop loss should never exceed your maximum exposure amounts.
Range:132pips.
Risk of 132pips must make a profit of 198,00 (a risk to reward ratio of 1:1.5 is recommended)
As a rule, the market is highly volatile if the previous day had a huge volatility. Volatility: 178,93 therefore the market indicates the higher volatility.

The material has been provided by InstaForex Company – www.instaforex.com

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