FX.co ★ EUR/USD technical analysis for November 6, 2013

Weekly pivot point: 1.3595.

Overview:

EUR/USD: It should be noted that the market was stable and the trend was also so clear (downward and a range equals 180 pips). Amid the latest events the price has still been trapped between 1.3570 and 1.3480 so it is of the wisdom to be neutral at this area. Therefore, the first step is waiting for a period of tight sideway range market before breakouts. Then, there is a probability that the market is going to start showing the signs of the bullish market (explosive breakout is expected). In other words, it will be a good sign to buy above 1.3376 with the first target of 1.3515 and the price breakout and it will climb towards 1.3590. However, If the the pair breaks 1.36 and closes below it, the market will indicate a bearish opportunity below 1.3596, and then the support will become resistance. So, it will a good sign to sell below 1.3595 with the first target at 1.3530 and it will call for a downtrend in order to continue the bearish towards 1.3480 in order to form new double bottom at this level. Moreover, if the trend could break the double bottom, the market will probably continue a bearish trend towards the weekly support 1 at the level of 1.3373.