FX.co ★ Technical analysis of EUR/USD for September 17, 2014

Overview:

• Due to the previous events, the price is still between the levels of 1.3009 and 1.2933, so it is recommended to be careful while making deals in this area. Also, It should be noted that the market showed the signs of instability because the trend movement was controversial as it took place in the narrow sideways channel. So, the market was in an uptrend for a short term. Moreover, it might be noticed that the price of EUR/USD pair has been rebounding higher towards the level of 1.2973. Also, note that we expect a range of 70 pips today and the level of 1.2933 will act as a key level to confirm the bullish market. Therefore, buy above the level of 1.2933 (1.2929: 23.6% of Fibonacci retracement levels), with the first target of 1.2983, it might resume to the 1.3009 price in order to form a double top in H1 chart. Conversely, the price may close below 1.3009 (50% of Fibonacci retracement levels) in H1 chart. Consequently, the price will call for a bearish market to go further towards the level of 1.3009. However, it should be always noted that the stop loss should never exceed your maximum exposure amounts.