FX.co ★ EUR/USD technical analysis for July 4, 2013

Overview:

The EURUSD's support was broken and it was turned to resistance at the level 1.3111 for ten days (June 24, 2013). Therefore, the pair has already formed a strong resistance at 1.3111. Moreover, after it could not close above 38.2% Fibonacci retracements levels and start signing for bearish market, and the price has placed below 38.2% Fibonacci since two week. Additionally, the weekly pivoit point for 1 - 5, July, 2013 had been set at the level of 1.3048. Furthermore, it should also be noted that the price has still been trapped between 1.3000 and 1.3050.

At the same time, the RSI and the moving average (100) are still calling for downtrend. Thus, the market indicates a bearish opportunity on the level of 1.3111 on H1 chart with the first target at 1.3050, and continues towards 1.3000. However, if the price closes above the resistance then the best location for placing a stop loss should be above 1.3160.