Overview:

• The EUR/USD pair has already formed a strong resistance level of 1.3707. This level had already the last weekly pivot point, but this week is coinciding with the ratio of 78.6% Fibonacci retracement levels. Additionally, after it could not close above 1.3660 (the weekly pivot point for 26-30 May, 2014) and the pair started signing for bearish market at this spot. Therefore, the pair will be in a downside momentum rather convincing and the structure of the fall looks is not corrective, in order to indicate a bearish opportunity below 1.3700 or 1.3660 for that it will a good sign to sell below this area with the first target of 1.3615 to test the double bottom in H1 and its chart will call for downtrend in order to continue bearish towards 1.3585 (weekly support one). However, it should be noted that the price has still been moving between 1.3660 and 1.3615. So, we expect a range of 70 pips on May 28, 2014.