FX.co ★ Technical analysis of EUR/USD for December 20, 2013

Daily pivot point: 1.3695

Overview:

• The EUR/USD pair has already formed strong resistance at 1.3700 since yesterday, as well as it should be noted that the support has been broken and turned to resistance on December 20, 2013. It might be noticed that after, it can close above 78.6% Fibonacci retracements levels (1.3700) and start signaling the bearish market from this level, because at the level of 1.3695, there is strong area for selling. Therefore, according to the previous events, the price has still been trapped between 1.3700 and 1.3666, the market indicates bearish opportunity at the level of 1.3700 in order to sell at the level of 1.3695 with the first target of 1.3655 and continue towards 1.3620.
• Additionally, in case a reversal takes place and EUR/USD breaks through the support level of 0.3613, the pair will decline futher to 1.3552 (50% Fibonacci retracement levels in H4 chart).

Different outlook:

• On the other hand, the level of 1.3550 is going to form a coherent support on 20/12/2013, as a result in the short term it should be bought at 1.3555 with a target at 1.3605. The best place to set stop loss is the area below 1.3520.

Note:

• 1.3695: it should be noted that the support was broken and turned to resistance on December 20, 2013.