Overview:

• The EUR/USD pair broke major resistance at the price of 1.1263 last week for that the level of 1.1263 has become a strong support for August 24-28, 2015. Besides, the weekly pivot point is calculated at 1.1263 and the pair is now moving from it since last week. Therefore, it will probably start an upside movement in this area and recover again. So, the market will indicate a bearish opportunity at the levels of 1.12631 and 1.1388. The area of 1.12631 and 1.1388 is acting as a strong support this week, hence it will be a good sign to buy at this spot with the first target of 1.1509 and continue towards 1.1540 in order to form a new double bottom. On the other hand, if a break of 1.1263 happens, it will be a good place to put stop loss.

Trading recommendations:

• According to the previous events, the price of the EUR/USD pair has been still moving between 1.1263 and 1.1635 this week.
• Buy at the level of 1.1390, look for further downside with the 1.1500 and 1.1630 targets.
• The stop loss should be set at the price of 1.1228.

The weekly technical analysis of EUR/USD pair: