Technical analysis of EUR/USD for August 29, 2016

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Overview:

  • The EUR/USD pair dropped sharply from the level of 1.1273 towards 1.1160. Now, the price is set at 1.1188. It should be noted that volatility is very high for that the EUR/USD pair is still moving between 1.1156 and 1.1225 in coming hours. Besides, it should be noted the the pivot is seen at the point of 1.1225. Furthermore, the price is still set below the strong resistance at the levels of 1.1273 and 1.1225, which coincides with the 61.8% and 38.2% Fibonacci retracement level respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the EUR/USD pair is continuing in a bearish trend from the new resistance of 1.1225. Thereupon, the price spot of 1.1225 – 1.1273 remains a significant resistance zone. Therefore, a possibility that the EUR/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.1225 – 1.1273, sell below 1.1225 or 1.1273 with the first targets at 1.1156 and 1.1132 (the double bottom is seen at 1.1132). However, the stop loss should be located above the level of 1.1305.

The material has been provided by InstaForex Company – www.instaforex.com

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