16.01.201416:36 Forex Analysis & Reviews: Intraday technical levels and trading recommendations for EUR/USD for January 16, 2014

Long-term review

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Bullish movement above 1.3450 within the depicted bullish channel allowed the pair to reach further supply levels around 1.3650 and 1.3750, respectively. This was taking place until obvious bearish rejection was expressed at 1.3850 (failing to reach 100% Fibonacci Expansion at 1.3904).

Breakdown of the depicted bullish channel took place shortly after. This led to sliding towards 1.3600 then 1.3550 where a temporary low was recorded.

Yesterday, the EUR/USD pair expressed a strong bearish engulfing daily candlestick which puts further bearish pressure on 1.3600.

The daily chart outlook is bearish probably targeting at 1.3470-1.3400 (prominent DEMAND zone on the DAILY chart).

Yesterday, the EUR/USD pair consolidated around 100-SMA (located at 1.3660) showing indecision. As expected, this led to a corrective bearish movement towards 1.3600 yesterday.

Price level of 1.3580 showed some bullish rejection yesterday. However, the bears are pushing again below 1.3600.

Breakdown of 1.3600 opens the way directly towards temporary support located around 1.3560 (backside of a broken downtrend line).

Price zone of 1.3500-1.3520 is considered a prominent DEMAND being the lower limit of the ongoing bearish channel as well as psychological support.

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