FX.co ★ Technical analysis of EUR/USD for July 31, 2014

Technical outlook and chart setups:

1. The EUR/USD 4H chart view is showing bullish divergence for now, indicating that the pair may pullback towards at least 1.3480 levels before drifting lower. It is pretty much clear that the pair has resumed its over all bearish trend.

2. Support is seen at 1.33 followed by 1.32 (fibonacci supports) and lower while resistance is seen at 1.3480 (fibonacci 0.382), followed by 1.3540 and higher respectively.

3. The structure indicates that EUR/USD is potentially a sell on rallies pair. Levels of interest are 1.3480 and 1.3540.

Trading recommendations:

Remain flat for now, look to sell higher up. Aggressive setup would be to initiate long positions, stop below 1.3350, target is 1.3480.

Good luck!