31.07.201404:01 Forex Analysis & Reviews: Technical analysis of EUR/USD for July 31, 2014

Long-term review

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As expected, the Fed cut another $10 billion from the asset purchase program. The second quarter GDP numbers were printed beyond expectations. The US economy grew strongly in Q2 at a 4% seasonally adjusted annual rate. On the other hand, the labor market is improving, with the declining unemployment rate. These activities made the dollar stronger and pushed EUR/USD towards 1.3366 levels.

The pair reached the 50MSma in yesterday's trade and managed to stay above it. If the pair closes below 1.3397 (50MSma), the pair will again push to 1.3295 levels (November 2013 low).

Bearish views-

The 50MSma at 1.3397 was hit.

Trading below the 200WEma at 1.3425- short-term negative

Trading far below the 50WSma at 1.3621- short-term negative

Trading below the 50DSma and 200DEma- near-term negative

Intraweek

support: 1.3345 1.3320 1.3295

Resistance: 1.3444 1.3468 1.35

Intraday- cmp 1.3397

The pair has just climbed above the 35HrDema and is trading below 21HrSma and 34HrSma that is one more bearish sign.

Support 1.3390 1.3366 1.3345

Resistance 1.3420 1.3444 1.3475

Sell on the rally with sl 1.3450 or buy only above 1.3450 .

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