Overview:
The EUR/USD pair support was broken and turned to resistance at the level of 1.2592 last week, thus the pair has already formed strong resistance at 1.2592 which represents the weekly pivot point. Moreover, after it could not close above it and started indicating a bearish market, the price has placed below 38.2% Fibonacci retracement levels within a week. Additionally, it should also be noted that the price has still moved between 38.2% Fibonacci retracement levels and the double bottom in H1 chart. Equally important is that the RSI and the Moving Average (100) are still calling for downtrend. Therefore, the market indicates the bearish opportunity at the level of 1.2592 with the first target of 1.2485 and further towards 1.2420 (the weekly support 1). On the other hand, if the price closes above the resistance then the best location for placing a stop loss should be above 1.2727. However, the level of 1.2416 will act as strong support on November 5, 2014. Hence, it is of the wisdom to take profit at this area.