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.

Best Regards

Tuesday 06 Mar 2012 07:00 AM

Views: 995

Comment by Haitham653 on March 7, 2012 at 3:38pm

We have good set up for short entry around 1.3120/25 with stop 50 pips , target one 30 pips , target two 60 pips , target three 90 pips....

Comment by naivetrader1 on March 7, 2012 at 6:16pm

Naive observation:EU@3136:  Is SMA50 providing a rounded bottom support on Daily chart? On last 3 occasions EU bounced off SMA50 (3025, 3026, 2973). Could it do the same again? Retracement up to 3320 would create a H&S on Daily that could conform with Bearish trend on Weekly chart!!!

Comment by naivetrader1 on March 7, 2012 at 8:02pm

Naive observation: EU was falling out off the 'Big Rising Wedge', on Weekly Chart, this week. But over last 8-9 days it's trading in to a 'sharp falling wedge', on Daily. Would it help EU to get back in to the Big Wedge & reach up to (at least) 3320-ish? Break of 3320 might take it up to the top of the Big Wedge, near 3500-ish & then a free fall, downwards?

Comment by Reza Ajorloei on March 8, 2012 at 4:40am

Euro edged higher now quoting at 1.3173 ,  expect more gains after consolidating above 1.3150 for 1.3200 and 1.3240 targets.


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