SignalTrader.com - EUR/USD Daily Outlook, Apr 12, 2011

by SignalTrader Tue Apr 12, 2011 10:47 am

Technical Overview:
EUR/USD technical analysis picture is mixed. After the huge rally of last week, the bulls took a short break and the bears took advantage of it, pushing the pair price down toward 1.44.
Looking at the Daily chart we can see that the pair is still moving between the bands of the upward channel. The RSI indicated yesterday overbought levels and indeed the pair retreated 100 pips from its current rally peak, before hovering around 1.44.
The most significant medium term support is at the lower band of the channel at 1.426.
Looking at the 30-minute chart, we can clearly see that the pair failed yesterday to remain above the blue band, which resulted in a nice move down. The immediate support is at 1.4377, both EMA 200 and the green band.
At these levels we are looking for longs with a tight stop loss.

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Trading Idea:
Best levels to enter LONG positions are between 1.437 and 1.439. Target is at the top red band at around 1.453. Stop loss is at 1.435.
SHORT positions should be taken by breaking below 1.433 with a stop loss at 1.439 and take profit at 1.426-1.427.

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