- The EUR/USD pair broke major resistance at 1.2339 this week. Also, the pivot point is calculated at 1.2339 and the pair has been falling from this area for three days. Therefore, it will probably start a downside movement at this area and recover again. So, the market will indicate a bearish opportunity at the level of 1.2339 or 1.2323 (23.6% of Fibonacci retracement levels on H4 chart), for that it will be a good sign to sell at this spot with the first target of 1.2164 (the double bottom), and continue towards 1.2105 in order to test the support one. On the other hand, if a break of 1.2340 happens, then it will be a good location for placing stop loss.
- In the long term, the price of EUR/USD pair is still moving between 1.2320 and 1.2155.
But, it should be noted that the price has set below the resistance since the 22nd of December, 2014. Hence, below the level of 1.2339 (resistance), look for further downside with the 1.2164 and 1.2105 targets.
The material has been provided by InstaForex Company – www.instaforex.com