Overview and trading recommendations:
- The EUR/USD pair is in the long term.
- The price of the EUR/USD pair is going to continue its bearish sentiment from the level of 1.2653 (the weekly resistance 1). Accordingly, it will be a good sign to sell below 1.2653 with the first target of 1.2576 to test a minor support at this price which coincides with the weekly pivot point. Also, it will call for a downtrend in order to continue its bearish movement towards 1.2495. The level of 1.2495 is the lowest point since 26/8/2012. At the same time, the stop loss should be placed above 1.2575 at the price of 1.2590. Equally important, the support will set around the double bottom 1.2500 level. Additionally, it should be noted that the range today will be about 125 pips.
Weekly technical levels:
- R3: 1.2867
- R2: 1.2790
- R1: 1.2653
- PP: 1.2576
- S1: 1.2439
- S2: 1.2362
- S3: 1.2225
- It should be noted that if there is no significant news to influence, the market price will be moving from pivot point to resistance 1 or support 1. But if there is significant news to influence, the market price may go straight through resistance 1 or support 1 and reach resistance 2 or support 2 and even resistance 3 or support 3.
- We expect a new range up to 250 145 pips this week.
- The key level is seen set at the level of 1.2575.
The material has been provided by InstaForex Company – www.instaforex.com