The daily pivot point: 1.3387

Overview:

• Due to the previous events, the price of EUR/USD pair has still been between the levels of 1.3420 and 1.3366. Therefore, it is recommended to be careful while making deals inside this area. Also, it should be noted that the market showed the signs of instability. The trend movement was controversial as it took place in the narrow sideways channel (the range will be from the level of 1.3440 and the 1.3333 level). Therefore, it is necessary to wait till the sideways channel is passed through. Then the market will probably show the signs of a bullish trend because the support has already set at the level of 1.3333. In other words, buy deals are recommended above the 1.3333 level with the first target at the level of 1.3390 to test the daily pivot point. From this point, the pair is likely to begin an ascending movement to the point of 1.3405 and further to the level of 1.3440. The level of 1.3440 will act as a strong resistance on August 14, 2014. Furthermore, it should be noted that the double top will set at the price of 1.3443. Nevertheless, if the pair fails to pass through the level of 1.3445, the market will indicate a bearish opportunity below the strong resistance level of 1.3440. In this regard, sell deals are recommended lower than the 1.3440 level in the long term with the first target at 1.3377. The pair is likely to turn downwards continuing the development of the bearish trend to the level 1.3340.