EUR/USD: the pair will be stuck within the sideways channel

November 4, 2013

Current trend

Following the meeting of the US Fed last week, the pair sharply dropped in price. Although the dates have not been specified, but even the feeble hint about curtailing of the quantitative easing programs has prompted investors to close long positions. Many analysts believe that sharp decline was also triggered by the fact that the pair is overbought. Today, during the Asian session, the pair EUR/USD fell to the level of 1.3440, then returned to the previous level and is now trading below the level of 1.3500.

Support and resistance

The nearest support level is 1.3450; next support levels are 1.3420 and 1.3400. The level of 1.3420 is the main target of the bears. Resistance levels: 1.3500, 1.3550 and 1.3575.

Trading tips

It is likely that the pair will trade in the sideways narrow channel, at the border of which pending orders can be placed. Limit sell orders are recommended at the level of 1.3510, buy orders at the level of 1.3450. Do not forget about stop-loss orders.

Ilya Lashenko

Analyst of LiteForex Group of Companies

Publication source
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