31.10.201410:06 Forex Analysis & Reviews: Technical analysis of EUR/USD for October 31, 2014

Trading recommendations:

• We expect that the trend of EUR/USD is going to call for a bearish market at the level of 0.2707 in H1 chart. Additionally, it should be noted that the range today will be about 95 pips. Thereupon, sell at the price of 1.2707-1.2646 with the first target of 1.2550, it might resume to 1.2481in order to test the weekly support. At the same time, the stop loss should never exceed your maximum exposure amounts. Accordingly, your stop loss should be placed above the 1.2728 level.

Review:

• The price hit the weekly support 1 resistance 1 and pivot point this week.
• The major support is going to set at 1.2481 on October 31, 2014.
• The level of 1.2707 is representing the weekly pivot point, it will act as strong resistance today.
• Hence, according to the previous events, the price of the EUR/USD pair is going to move between 1.2510 and 1.2647.
• So, we expect a range between 113 pips and 184 pips this week.
• Therefore, it will be very useful to sell below the price of 1.2707 in the long term with the first target at 1.2546 in order to test the double bottom. But if the trend is able to break the double bottom at 1.2546, then it might resume to the level of 1.2481.

Notes:

• If the trend is upward, then the strength of the currency will be defined as follows: EUR is in an uptrend and USD is in a downtrend.
• The double bottom will set at the level of 1.2500 and this level is going to represent the ratio of 00% Fibonacci retracement level in H1 chart.
• The minor support is going to set at 1.2546.
• The major support had already set at the price of 1.2481. Moreover, the double bottom also coincides with the major support.