FX.co ★ Technical analysis of EUR/USD for August 6, 2014

The weekly pivot point: 1.3412

Overview:

• The minor support of EUR/USD pair is going to set at 1.3330. And this level is going to represent the weekly support 1. But the second support had already set at the price of 1.3310. We sould consider the following important observations: the price hit the weekly pivot point this week and support 1. For now, it has been around it since last week, because of the series of relatively equal highs and equal lows. We expect a bearish market from the weekly pivot point (1.3412) for August 5-8, 2014. So, according to the previous events, the price of the EUR/USD pair is going to move between 1.3380 and 1.3310. Sell below the level of 1.3380 with the first target at 1.3333, then it will be continued towards 1.3310 to test the major support today. Also, it should be noticed to check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated. Additionally, the stop loss should always be taken in account. Therefore, it will wise to set your stop loss at the price of 1.3425.