FX.co ★ Intraday technical levels and trading recommendations for EUR/USD for January 15, 2014

Technical outlook

Bullish movement above 1.3450 within the depicted bullish channel allowed the pair to reach further supply levels around 1.3650 and 1.3750, respectively. This was taking place until obvious bearish rejection was expressed at 1.3850 (failing to reach 100% Fibonacci Expansion at 1.3904).В 

Breakdown of the depicted bullish channel took place shortly after. This led to sliding towards 1.3600 then 1.3550 where a temporary low was recorded.

Yesterday, the EUR/USD pair consolidated around 100-SMA (located at 1.3660) showing indecision. As expected, This lead to a corrective bearish movement towards 1.3600. being tested today.

The 4H chart shows a confluence of support located around 1.3600 (previous demand level and backside of the broken 4H bearish channel).В 

A valid BUY entry can be taken at 1.3600 with SL as 4H closure below 1.3550.В TP levels should be located at 1.3660 then 1.3720.