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12.02.2014 06:15 PM
Intraday technical levels and trading recommendations for EUR/USD for February 12, 2014

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The nearest SUPPLY zone is located between 1.3680 - 1.3730 which corresponds to the 50% and 61.8% Fibonacci levels.

Yesterday, the pair expressed an inverted hammer daily candlestick while retesting 1.3680 (50% Fibonacci).

Fundamentally, industrial production in the euro area witnessed an unexpected decline of 0.7% on a monthly basis in December compared to its previous reading of 1.8%.

This contributed to the ongoing bearish impulse taking place right now. Initial bearish target for this movement is located near 1.3530 (previously established bottom).

On the other hand, a more prominent DEMAND level is located around 1.3450.

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As we can see in the chart, bulls pushed towards the price levels around 1.3737 where strong bearish rejection was expressed.

As expected, a corrective bearish movement towards 1.3500 took place shortly after.

The price zone of 1.3500-1.3470 provided considerable support for the pair pushing again towards 1.3670 (50% Fibonacci) which corresponded also to the upper limit of the ongoing bearish channel.

As expected, a price near 1.3680 provided a valid SELL entry. This SELL position is already running in profits now. Initial target is located at 1.3520 then 1.3470, while SL remains as 4H closure above 1.3680.

Summary
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