EUR/USD Holding in a Trading Range Between 1.3200 – 1.3400

Last week, after testing 1.3200 support area on Thursday, EUR rebounded back to hit an intraday high of 1.3380 against USD on Friday. EURUSD currency pair, however, failed to break above 1.3400 resistance zone and on Monday, the pair eased further and is currently trading near 1.3320 – 1.3340 support area consisting of 61.8% and 23.6% Fibonacci Retracement Levels of 1.3710 – 1.2746 downfall and 1.2042 – 1.3710 up-move respectively.

• The pair held to its trading range between 1.3200 – 1.3180 zone on the downside and 1.3400 – 1.3410 on the upside ahead of the minutes of Federal Reserve’s July 30-31 policy meeting, scheduled for release on Wednesday.
• From current levels, 1.3300 round figure followed by 1.3250 seems to provide immediate support on the downside for the currency pair.
• However, as was mentioned in previous report, 1.3200 zone seems to have emerged a very strong near-term support for the currency pair and a decisive break below 1.3200 – 1.3180 support zone, also coinciding with  50% Fibonacci Retracement Level of 1.3710 – 1.2746 downfall, might confirm a Double-top chart pattern formation on daily chart.
• Should the pair start trading below 1.3200 – 1.3180 strong support zone, the pair could easily drift lower towards a very important psychological round figure support of 1.3000 level. The pair is likely to find minor intermediate support near 1.3130 – 1.3110 zone, consisting of 200-day SMA and 38.2% retracement level.
• Meanwhile, on the upside 1.3380 – 1.3400 zone might continue to provide immediate resistance for the currency pair. Should the pair manage to decisively strengthen above 1.3400 resistance area, the pair seems to be heading towards 2013 closing highs, 1.3650 – 1.3700 zone, in the near-future with intermediate resistance near 1.3450 – 1.3460 zone.

Original Article: Admiral Markets and hyper link Admiral Markets with http://www.admiralmarkets.com/