FX.co ★ Weekly forecast and an intraday analysis of EUR/USD for July 28-August 01, 2014

EUR/USD

Traders will watch this week's economic event:

German Prelim CPI, Spanish flash CPI and GDP and Federal Reserve announcement are the major earlier key events this week.

The pair drifted to a 8-month low and closed at the lowest point during the Friday session. The pair has near strong support at 1.3420 and 1.3395-1.3370 levels. It will fall another 100 pips straight away, if it hits 1.3370. On the down side, the open target is at 1.3295, 1.3250 and 1.3210 levels. On a monthly basis, the pair is held the 50MSma at 1.3395 levels.

Weekly basis (July 28 - August 1)

The pair is trading below the weekly moving averages in the daily chart. The pair acting stall near the strong support 1.3420 1.34 and 1.3395. We recommend to sell again below 1.3370 levels. The weekly trading range is between 1.3370-1.3477-1.3550 levels. Until the pair trades below 1.35 on a weekly basis, selling on an up move will mint the money.

In the daily chart, the daily momentum oscillators are indicating an oversold level. This is the only hope bulls have.

Support: 1.3420, 1.3395, 1.3370

Resistance: 1.3485, 1.35, 1.3560

Intraday view- cmp 1.3428

In Asia's session the pair is trading at 1.3428, holding above the Friday low of 1.3420. It is trading below the hourly moving averages, which is a highly bearish part and the hourly momentum oscillators are indicating an oversold level. Until the pair trades below 1.3480, the bears will have an upper hand.

Resistance: 1.3435, 1.3460, 1.3480.

We recommend buying only above 1.35.