EUR/USD Channel Breakdown (August 29, 2013)

EUR/USD’s uptrend seems to be exhausted already as the pair broke below the rising channel support on its 4-hour time frame. The strong red candle close below the 1.3300 major psychological level signifies a possible reversal, probably back to 1.3000.

Stochastic is pointing down, hinting that euro selling power is still very strong. The next midterm support seems to be located around the 1.3200 handle though so it might be prudent to adjust stop losses or lock in some profits then.

A stop above the 1.3300 handle and a wide profit target until the 1.3000 level could yield a good reward to risk ratio for a swing trade.

By Kate Curtis from Trader’s Way