FX.co ★ Technical analysis of EUR/USD for July 04, 2014

EUR/USD

The ECB has kept the interest rates on hold. On the other hand, the non-farm payrolls rose by 288,000 in the previous month, which supported the US dollar. The pair EUR/USD is drifting to 1.3596 levels. The pair has made a minor double top on the monthly chart at 1.37 levels. Until the pair trades below it, the near-term look favors bears. The pair has immediate support at 1.3574 (previous week's low). In yesterday's session the pair broke the 200 days Ema and 20days. Now the 200 days Ema is at 1.3620 acting as very strong resistance. We recommend safe traders entering buy side only above 1.3620.

On an intraday basis, the pair is trading in a complete bearish mode. It is trading below the hourly moving averages. In Asia's session the pair is trading at 1.3609 nearest support at 1.3595. Below it, there is weekly support at the level of 1.3575. If the pair chops the 1.3575, it can drift to 1.3545 and below. The panic situation would open gates for 1.35, 1.3477 and even lower 1.3420(weekly 200 Ema). On the upside, it has resistance at 1.3620, 1.3645 and 1.3660 levels.

Cmp 1.3609

Positional traders buy only above 1.37

Intraday sell below 1.3575 targets 1.3545 1.3520 1.35 and 1.3477

July key level to breach 1.37. If not, we can see 1.3420 first, then 1.3220 levels.