FX.co ★ Intraday technical levels and trading recommendations for EUR/USD for February 27, 2014

The bullish impulse managed to bypass the upper limit of the bearish channel.

50% Fibonacci level that corresponds to the upper limit of the bearish channel got broken too.

This opened the way towards 1.3730 (61.8% Fibonacci Level) then 1.3770 which was hit quickly. However, the pair has been trapped between 1.3680-1.3770 until today we had a breakout to the downside.

Breakout in either direction is needed to achieve its breakout projection target.

The short-term scenario remains bearish as long as the bears remains fixating below 1.3730. Otherwise, a bullish impulse may be initiated towards 1.3730 (Fibonacci 61.8%) initially.

A valid BUY entry may be taken at 1.3600 (retesting of the backside of the broken channel) with SL as 4H closure below 1.3540.