Technical analysis of EUR/USD for January 29, 2014

Overview:

• The EUR/USD pair resistance was broken and it turned support at the level of 1.3544 last week, as well as the same level is coinciding with the first weekly support on January 29, 2014. Therefore, the pair has already formed a strong support at the 1.3544 level. But it should be noticed that a minor support will be set at the level of 1.3625 around the 50% Fibonacci retracement levels in H1 chart. Moreover, the price of the EUR/USD pair could not close neither below 1.3544 nor 1.3625. Additionally, it should also be noted that the price has still been moving between 88.2% Fibonacci retracement levels and 23.6%. Equally important, the RSI and the moving average (100) are still calling for uptrend, for that the market indicates a bullish opportunity at the level of 1.3544 or 1.3600 with the first target of 1.3710 and continues towards 1.3777 in order to try to test the weekly resistance 1. On the other hand, if the price closes below the minor support, then the best location for placing a stop loss should be below 1.3580, thus the price will call for a bearish market in order to go further towards the double bottom at 1.3507 to test it again.

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