FX.co ★ Technical analysis of EUR/USD for January 29, 2014

EUR/USD broke the seven-month lower trend line. Oscillators gave a negative divergence indication. The index of consumer confidence improved to 80.7 from 77.5 in December. The pair is trading at the level of 1.3651, the lowest point on January 29, 2014. From the last Friday the pair has been trading in a bearish phase, making lower lows and lower highs (major bearish factor). 1.3740 is the major resistance zone. Positional basis, if the price breaks above the previous high of 1.3740 next targets come at 1.3937.

Support: 1.3640, 1.3624, 1.3618.

Resistance: 1.3661, 1.3673, 1.3686.

Overall, the pair is trading in a bearish mode. On an intraday basis, the pair is trading in the sell zone with resistance at the level of 1.3570. Positional traders, go short with sl at 1.3750 for the targets of 1.36 and 1.33.