FX.co ★ EUR/USD Intraday Technical Analysis September 14, 2011

We mentioned the importance of support level 1.3700-1.3400 as a considerable support for the pair since last Friday.

1. Retest of the broken downtrend line which started September 2009 and broken in March 2011.

2. The lower limit of the bearish channel that started in May this year.

3. Multiple Previous congestion zones marked on the chart.

4. 61.8% Fibonacci level of the marked weekly swing from 1.2900 to 1.4880.

As wee see now the pair is unable to pass below this level acting as brakes which prevented further downside movement of the pair.

Daily chart reveals the strength of the current level 1.3650 which is 61.8% Fibonacci level of the bullish swing from 1.2900 to 1.4880.

The last two daily candles came very bearish with long lower shadow closing above failing to close below this fibonacci level & back inside the bearish channel after little breaching of it.

Final target of this position is at the upper limit of the bearish channel around 1.4050 with profit taken every 75-100 pips.

SL should be weekly closure below 1.3400.