FX.co ★ EUR/USD technical analysis for August 30, 2013

Overview:

The EUR/USD's support was broken and turned to resistance on 24th of July 2013, thus the pair has already formed strong resistance at 1.3495. Moreover, after it could not close above 100% Fibonacci retracement levels it started indicating a bearish market, the price has been placed below 78% Fibonacci within three days in the chart H4. Additionally, it should also be noted that the price has still been trapped between 78% Fibonacci retracement levels and 61.8%.

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 1.3500 in H4 chart with the first target of 1.3280 and further towards 1.3200. On the other hand, if the price closes above the resistance then the best location for placing a stop loss should be above 1.3525.