EUR/USD: Short-Term Trend Setup (August 12, 2013)

EUR/USD is still in a strong uptrend on its 1-hour time frame, as seen from the rising trend line that connects the price’s lows. It appears that another test of the trend line could take place within the day, as the pair has retreated upon reaching resistance at 1.3400.

The 1.3300 major psychological level has acted as a resistance area in the past, which means that it could act as support from now on. It is also in line with the rising trend line.

Stochastic is in the oversold region, suggesting that a bounce is in the cards. A long order at 1.3300 with a 50-pip stop and a target at the previous high of 1.3400 would be a 2:1 trade.

By Kate Curtis from Trader’s Way.