Technical analysis of EUR/USD for May 6, 2014

Overview:

• The EUR/USD pair has successfully tested the resistance area set by the recent high at 1.3920 today besides the intraday key resistance at 1.3960. Accordingly, EUR/USD is challenging the psychological resistance at 1.3960. Equally important, bears are asking for a high price at 1.3960 because buyers have not breached the resistance, suggesting a bearish possibility below this level. In consequence, it should become a bear investor who believes that the trend is going to fall because the market will be called for a bearish market (downtrend). In particular, the pair is now moving down from the double top and it is going to decrease by 65 pips that may look for a support around 1.3888, so it is very profitable to take profit at 1.3890 as an initial target today.

Notes:

• The resistance will set at the level of 1.3960 today.
• The double top is going to set at the 1.3920 price.
• The area of 1.3960 is useful spot to sell in the long term.
• We expect a range of 65 pips on May 6, 2014.

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