Technical analysis of EUR/USD for December 26, 2013

Tools of chart:

Pair: EUR/USD.

It should be noted that the market was stable because of the holidays.
The trend was not so clear (sideways).
Range was: 62 pips (downward).
The value of 50% Fibonacci retracement levels is: (High + Low) / 2 = 1.3717. (The key level to confirm the bullish market).
Volatility is 98.54, so the market has called for low volatility.

Trading recommendations:

According to the previous events, the price will be trapped between the level of 1.3595 and 1.3750. Buy above 1.3777 (78.6% of Fibonacci retracement levels) as the maximum range for December 26 – 27, 2013. Then buy above 1.3595 with the first target of 1.37, it might resume to 1.3766.
Below 1.3770 (78.6% of Fibonacci retracement levels), look for further downside with the 1.3713 and 1.3624 targets.
Note: at the level of 1.3624, a double bottom will be formed.

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

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