Overview:

• The support will be set at the level of 1.0952 and the double bottom has been already set at the price of 1.0924. Last week, the EUR/USD pair has called for the bullish market from the price of 1.0952/1.0924 because the price of 1.3800 is representing strong support. Preference is to buy above the support at 1.0952/1.0924 with the first target at 1.1151. Moreover, if the pair can break the price of 1.1151, it is going to continue towards 1.1213 in order to test the double top. However, the stop loss has always been in consideration, thus it will be useful to set it below the last double bottom at the level of 1.0905 (notice that the major support on May 5, 2014 is set at 1.0924).

Notes:

• The weekly pivot point at 1.1082 could hit the moving average (50).
• We expect a range between the levels of 1.0952 and 1.1213.
• Stop loss should never exceed your maximum exposure amounts.
• As a rule, the market is highly volatile if the previous day had a huge volatility.
• If there is no significant news to influence, the market price will be moving from pivot point to resistance 1 or support 1. But if there is significant news to influence, the market price may go straight through resistance 1 or support 1 and reach resistance 2 or support 2 and even resistance 3 or support 3.

The weekly Technical analysis of EUR/USD pair: