Intraday technical levels and trading recommendations for EUR/USD for January 7, 2014
January 7, 2014 3:45 pm
Both charts show a broken ascending channel with a double top reversal pattern, which is being confirmed this week.
Bullish movement above 1.3450 within the depicted bullish channel allowed the pair to reach further supply levels around 1.3650 then 1.3750, respectively, when obvious bearish rejection was expressed last week at 1.3800 (failing to reach 100% Fibo Expansion) leading the breakdown of the lower limit of the channel.
Stabilization below 1.3600 is a must to gather further bearish momentum to reach the estimated projection target of the reversal pattern around 1.3470.
Fundamentally, the EURO rose against the U.S.D on Tuesday after fundamental data showed a rebound in inflation rates for the euro zone , and is expected to apply pressure on the ECB to take some steps during the meeting scheduled for this week. Moreover, today German economic data came better than expected.
Daily closure above 1.3600 again invalidates the short-term bearish view. Moreover, it may be a bullish indicator for a bullish impulse to test 100-SMA at 1.3690-1.3740 roughly.
The material has been provided by InstaForex Company – www.instaforex.com
Both charts show a broken ascending channel with a double top reversal pattern, which is being confirmed this week.
Bullish movement above 1.3450 within the depicted bullish channel allowed the pair to reach further supply levels around 1.3650 then 1.3750, respectively, when obvious bearish rejection was expressed last week at 1.3800 (failing to reach 100% Fibo Expansion) leading the breakdown of the lower limit of the channel.
Stabilization below 1.3600 is a must to gather further bearish momentum to reach the estimated projection target of the reversal pattern around 1.3470.
Fundamentally, the EURO rose against the U.S.D on Tuesday after fundamental data showed a rebound in inflation rates for the euro zone , and is expected to apply pressure on the ECB to take some steps during the meeting scheduled for this week. Moreover, today German economic data came better than expected.
Daily closure above 1.3600 again invalidates the short-term bearish view. Moreover, it may be a bullish indicator for a bullish impulse to test 100-SMA at 1.3690-1.3740 roughly.
The material has been provided by InstaForex Company – www.instaforex.com
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