FX.co ★ Technical analysis of EUR/USD for October 24, 2014

Overview:

• The price of EUR/USD pair is going to move between 1.2630 and 1.2770. The level of 1.2605 is going to form the double bottom in H1 chart. Also, it should be noted that the market was very stable and trend was also quite clear (upward) this week. So, we expect a bullish market today from the area of 1.2603/1.2630. Therefore, buy above the level of 1.2603/1.2630 (these levels are representing the weekly supports) with the first target of 1.2682, it might resume to 1.2750 in coming hours in order to test the weekly resistance one. However, the stop loss should be always be taken into account. Therefore, it will be very useful to set your stop loss at the price of 1.2665 (blow the supports).
  

Observations:

• If the trend is upward, then the strength of the currency will be defined as follows: GBP is in an uptrend and USD is in a downtrend.
• Stop loss should never exceed your maximum exposure amounts. So, your stop loss should be around 45 pips for each position.
• Major support will set at 1.2575.
• Major resistance has already placed at 1.2770.
• We expect a new range about 78 pips this today.