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FX.co ★ Intraday technical levels and trading recommendations for EUR/USD for January 3, 2014

Intraday technical levels and trading recommendations for EUR/USD for January 3, 2014

Intraday technical levels and trading recommendations for EUR/USD for January 3, 2014

The price zone of 1.3280 - 1.3300 provided strong demand for the pair pushing it higher above 1.3400 - 1.3450 (prominent technical levels).

Persistence of the current bullish channel to push above 1.3450 allowed the pair to reach the next supply levels around 1.3650 then 1.3750 respectively until bearish rejection was witnessed last week at 1.3800.

The EUR/USD pair failed to reach 1.3900 (100% Fibo Expansion ). Instead, bearish rejection was manifested yesterday to push towards 1.3600 (the most recent DEMAND level).

A daily breakdown below 1.3600 confirms a double top pattern, which will be targeted at 1.3450-1.3430.

Intraday technical levels and trading recommendations for EUR/USD for January 3, 2014

4H chart shows a broken ascending channel with a double-top reversal pattern being confirmed.

For an early confirmation, 4H closure below the price level of 1.3600 may be a good indicator for enough bearish momentum to push towards 1.3530 initially.

Persistence of level 1.3600 as Intraday Demand (support) invalidates the short-term bearish view. Instead, it may be a bullish indicator for a coming impulse to test 100-SMA at 1.3690.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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