FX.co ★ Technical analysis of EUR/USD for August 26, 2014

Overview:

• The EUR/USD pair has rebounded from the minor support at the level of 1.3174. Now, it is approaching its support in order to test it. But as it is shown on the chart, the price has opened below the gap at the price of 1.3194. Moreover, it should be noted that the price of 1.3285 represents the weekly pivot point on August 26, 2014. Equally important, the weekly pivot point coincides with the ratio of 38.2% Fibonacci retracement levels in H1 chart. Consequently, it will probably start upside movement in this area and recover again. Therefore, it will be a good sign to sell at this spot with the first target of 1.3174 (it should be noted that this level will form the weekly support 1) and continue towards 1.3145 to form a new double bottom. On the other hand, in case of a break of 1.3308, a good place for stop loss will be above 1.3320.

Observations:

• The EUR/USD/CHF pair was calling for the bearish market from the level of 1.3285 this week.
• The weekly pivot point will be set at the price of 1.3285.
• The level of 1.3174 represents support 1.
• If the trend is of an upside character, then the strength of the currency will be defined as following: EUR is in the uptrend and USD is in the downtrend.