FX.co ★ Technical analysis for EUR/USD for January 31, 2014.

Technical outlook and chart setups:

1. The EUR/USD pair is back towards range bottom at the 1.3530/50 levels. It is recommended to keep short positions taken yesterday. A push through 1.3500 would prove to be extremely bearish, while risk remains at 1.3850.

2. Immediate resistance is at 1.3740/50, followed by 1.3850, while supports are spread through 1.3500 (intermediary), followed by 1.3400, 1.3300, 1.3100 and 1.2700 respectively.

3. The entire structure reveals that a major top formation has taken place at 1.3850/90 now, and the bear trend could possibly resume. The down side extensions are 1.3200 and 1.2800 respectively as seen here.

Trading recommendations:

Hold on to short positions, stop at 1.3850, target 1.32 and 1.28

Good luck!