SignalTrader.com - EUR/USD Daily Technical Outlook, Apr 14, 2011

by SignalTrader Thu Apr 14, 2011 1:17 pm

Technical Overview:
The technical picture of EUR/USD for today is mixed. On the very short term it is still looking bullish but there are more and more signs that suggest a correction toward 1.43-1.435 before deciding whether the rally will continue or not.
On the daily chart - the pair continues to move between the bands of the upward channel. Some major technical indicators are at overbought levels.
Both CCI and Stochastic indicators are already signaling a short term bearish reversal.
On the 30-minute chart the overall trend remains bullish.
Yet, the pair is facing a major immediate resistance at 1.45-1.452, the red band and the RSI 70 level. The ADX and the MACD are bullish.
At the current levels we remain outside of the market and waiting for either a reversal down or to a break above 1.453 level.

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Trading Idea:
Best levels to enter LONG positions are by breaking above 1.453. Target in such case would be 1.459-1.461 with a stop loss at 1.448.
Another opportunity for long might be at around 1.445-1.446 (the blue band), with a take profit at 1.451-1.452 and a stop loss at 1.438.
SHORT positions should be taken by breaking below 1.438 with a stop loss at 1.445 and take profit at 1.426.

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