Intraday technical levels and trading recommendations for EUR/USD for January 8, 2014
January 8, 2014 11:45 am
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. This took place when obvious bearish rejection was expressed at 1.3800 (failing to reach 100% Fibo Expansion).
Shortly after, the daily chart showed a broken ascending channel with a double top reversal pattern, which is being confirmed this week.
Yesterday’s daily candlestick failed to breach the previous daily high at 1.3650 resulting in an inverted hammer daily candlestick which enhances the bearish bias for the EUR/USD pair.
Stabilization below 1.3600 is a must to gather further bearish momentum to reach the estimated projection target of the reversal pattern around 1.3460.
Yesterday, the EURO rose against the U.S.D after fundamental data showed a rebound in inflation rates for the euro zone. This is expected to apply pressure on the ECB to take some steps during the meeting scheduled for this week. However, today Unemployment rate in the euro zone came just lower than its highest level in November, enhancing concerns about the impact of the debt crisis in the region on the growth rates. This may enhance our short-term bearish scenario towards 1.3460 initially.
Note that daily closure again above 1.3600 threatens the short-term bearish view probably allowing a bullish impulse towards 1.3690-1.3740 to take place.
The material has been provided by InstaForex Company – www.instaforex.com
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. This took place when obvious bearish rejection was expressed at 1.3800 (failing to reach 100% Fibo Expansion).
Shortly after, the daily chart showed a broken ascending channel with a double top reversal pattern, which is being confirmed this week.
Yesterday’s daily candlestick failed to breach the previous daily high at 1.3650 resulting in an inverted hammer daily candlestick which enhances the bearish bias for the EUR/USD pair.
Stabilization below 1.3600 is a must to gather further bearish momentum to reach the estimated projection target of the reversal pattern around 1.3460.
Yesterday, the EURO rose against the U.S.D after fundamental data showed a rebound in inflation rates for the euro zone. This is expected to apply pressure on the ECB to take some steps during the meeting scheduled for this week. However, today Unemployment rate in the euro zone came just lower than its highest level in November, enhancing concerns about the impact of the debt crisis in the region on the growth rates. This may enhance our short-term bearish scenario towards 1.3460 initially.
Note that daily closure again above 1.3600 threatens the short-term bearish view probably allowing a bullish impulse towards 1.3690-1.3740 to take place.
The material has been provided by InstaForex Company – www.instaforex.com
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