GBP/USD intraday technical levels and trading recommendations for May 29, 2014 2014-05-29 gbpdaillusam.jpggbp4hhh.jpg The pair has established recent support zone between 1.6765 and 1.6815 during February and March. These levels correspond to the previous tops in a successful Double Top pattern. The depicted BLUE uptrend line remained intact since it was established in November 2013. However, this time the bulls failed to achieve a higher high above the recent one around 1.6995. Moreover, the bears broke-down this trend line challenging the recent bottom around 1.6730 which was established in mid March. On the 4H chart, strong bearish rejection was expressed off 1.6920 leading to bearish breakdown of the depicted bullish channel as well as successive previous support levels now acting as resistance. Moreover, four-Hour closure below 1.6825- 1.6800 gathered enough bearish momentum to push towards the prominent support level around 1.6750. The long-term perspective remains bearish aiming to form another bearish limb that would extend below 1.6730 ( the most recent bottom ). This expected bearish impulse is probably targeting at 1.6650 ( previous ascending top ). Around 1.6650, price action should be watched then for a possible bullish corrective movement. Technical analysis of EUR/USD for May 30, 2014 2014-05-29 !EU300514.jpg When the European market opens, some economic news will be released such as German Retail Sales m/m, Italian Prelim CPI m/m.The US will release the economic data too such as the Core PCE Price Index m/m, Personal Spending m/m, Personal Income m/m, Chicago PMI, Revised UoM Consumer Sentiment, Revised UoM Inflation Expectations, so amid the reports, EUR/USD will move low to medium volatility during this day. TODAYs TECHNICAL LEVELS: Breakout BUY Level: 1.3667. Strong Resistance:1.3659. Original Resistance: 1.3646. Inner Sell Area: 1.3633. Target Inner Area: 1.3601. Inner Buy Area: 1.3569. Original Support: 1.3556. Strong Support: 1.3543. Breakout SELL Level: 1.3535. DESCRIPTION: Today EUR/USD has support and resistance at 1.3556 and 1.3646. The rate is accompanied by strong support at 1.3543 and by 1.3659 as strong resistance. If EUR/USD breaks out and closes below the 1.3535 level today, then it will indicate considerable bearish strength. Meanwhile, if EUR/USD manages to break out and closes above the 1.3667 level, then it will denote high bullish strength. Alternatively, for advance traders, you can trade in a way to open a BUY position at the level of 1.3569 and at 1.3633, a SELL position. In this case both targets should be placed at the level of 1.3601.
Posted on: Fri, 30 May 2014 06:43:35 +0000
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