Overview:
The EUR/USD's resistance was broken and it was turned to support for two days (October 15, 2013), thus the pair has already formed strong support at 1.3550 and minor support will be set at the level of 1.3550. Moreover, it could not close below 61.8% Fibonacci retracements levels and started indicating a bullish market, as well as the price was placed above 78% Fibonacci for three days. Additionally, it should also be noted that the price has still been trapped between 61.8% Fibonacci retracement levels and 100%. Equally important, the RSI and the moving average (100) are still calling for uptrend. Therefore, the market indicates the bullish opportunity at the level of 1.3550 in H4 charts with the first target of 1.3620, and continues towards 1.3663 in order to test the weekly resistance 2. On the other hand, if the price closes below the minor support, then the best place for a stop loss should be below 1.3515, thus the price will call for a bearish market in order to go further towards the strong support at 1.3430 to test it again.
Notes:
Resistance: 1.3666 Support: 1.3550