FX.co ★ Technical analysis of EUR/USD for May 2, 2014

The weekly pivot point: 1.3824

Overview:

• As expected, the price of the EUR/USD pair is going to turn to bearish sentiment from the level of 1.3892 because the resistance has already set at the level of 1.3892 and the double top was also placed near the resistance at 1.3887. Accordingly, it will a good sign to sell in this area with the first target of 1.3843 to test a minor support at this price which represents the the ratio of 61.8% Fibonacci retracement level in H1 chart. Also, if the trend will be able to break 61.8% Fibonacci retracement, it calls for downtrend in order to continue its bearish movement towards 1.3824. The weekly pivot point of EUR/USD pair this week has set at 1.3824. Notwithstanding, the stop loss should be placed at the price of 1.3923. Equally important, it should also be noted that the support will set at the 1.3824 level today.