As shown on the 4 hour chart above, the pair is trading around the sloping support line of the upward channel of the rally 1.2625/1.3485, according to momentum indicators strong pullback is on the horizon, on daily Williams is trying to find support around 1.3170, a daily close above yesterday's high 1.3240 is gonna give us a light bullish trend on daily - trend continuation of the previous swing at 1.2975 and the the pair should attack 1.3485 very soon...
A daily close below 1.3159 yesterday's low is gonna test/break the previous swing at 1.2975 on daily !
On 4 hour , a close below 1.3120 is gonna eliminate any positivity and should test 1.2975 very easy!
The last note , yesterday the pair found resistance at 1.3236, a clear break above this level (high & low) is supposed to attack /test 1.3365 very easy or even 1.3485....
Trend direction is upward, the trend will remain valid as long as 1.3170 holds , a daily close below level may test 1.2975 .
Support: 1.3170, 1.3120, 1.3040, 1.3000, 1.2975
Resistance: 1.3236, 1.3280, 1.3365, 1.3425, 1.3485
Recommendations: Upon the chart and the explanation posted above, my recommendations are;
1- Buying the pair with a clear break(high and low) above 1.3236 on 30 min chart, targeting 1.3320 & 1.3365, stop loss below 1.3159..
2 Selling the pair at 1.3095 targeting 1.3065,1.3035 & 1.3005 , stop loss at 1.3155.
Tuesday 06 Mar 2012 07:00 AM