05.09.201611:57 Forex Analysis & Reviews: Technical analysis of EUR/USD for September 05, 2016

Overview:

• The EUR/USD pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability. Amid the previous events, the price is still moving between the levels of 1.0949 and 1.1363 this week. Also, the daily resistance and support are seen at the levels of 1.1363 and 1.0949 respectively. Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed. last week, the market moved from its top at 1.1363 and continued to fall towards the bottom of 1.1156. Today, in the four-hour chart, the current drop will remain within a framework of correction. Moreover, the resistance is seen at the levels of 1.1274 - 1.1363 (the level of 1.1363 coincides with the double top too). If the pair fails to pass through the first level of 1.1274, the market will indicate a bearish opportunity below the first resistance level of 1.1274. Since there is nothing new in this market, it is not bullish yet. In the long term, sell deals are recommended below the level of 1.1274 with the first target at 1.1046. If the trend breaks the support level of 1.1046, the pair is likely to move downwards continuing the development of a bearish trend to the level 1.0949 in order to test the double bottom in the H4 time frame.