Intraday technical levels and trading recommendations for EUR/USD for February 5, 2014

A breakout above the previous resistance level of 1.3450 allowed bulls to higher levels around 1.3650, and then 1.3750 within the bullish channel.

Later on, obvious bearish rejection was expressed at 1.3850 (failing to reach 100% Fibonacci Expansion at 1.3904). Instead, a breakdown of the lower limit of the depicted bullish channel took place on January 2. This led to the previous bearish impulse that almost reached 1.3520.

Last week, the pair expressed another bearish breakdown of the demand zone of 1.3550-1.3500 (long-term uptrend line as well as SMA-100). This opened the way directly towards 1.3475 that was hit Yesterday. Any further bearish impulses will probably be targeting at 1.3455 (prominent Daily Support).

As we can see in the chart, bulls pushed towards the price levels around 1.3737 recently where strong bearish rejection was expressed.

As expected, a corrective bearish movement towards 1.3525-1.3500 took place shortly after.

The price zone of 1.3525-1.3500 failed to provide enough support for the pair. Instead, the pair has established a supply zone around the same price levels.

Fixation below this zone will gather further bearish momentum to push towards 1.3450 again then 1.3400 possibly.

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