The pair declined yesterday as expected from 1.4270 level towards 1.4180 level affected by the negativity of RSI on 1 hour chart , now it's around 1.4180 , a clear break below this level is supposed to take us down towards 1.4102 , I still see selling the pair around this level is risky too much , sudden and quick pullback may happen any moment ?!!
If you wanna short the pair , you may short it around 1.4270 but this time you have to be careful ?!!
It may break to up ?!!! anyway stop with an hourly closing above 1.4310 but also remember an hourly closing above 1.4310 is supposed to change the intra-day trend to bullish and attack 1.4460 and may be 1.4560?!!
Other option , if you wanna short , we need a test to 1.4102 level then wait for a pullback towards 1.4200/20 , we can short here , our target 1.4100/50 , stop above 1.4270 ?!!
Today I assume a strong and volatile move between 1.4100/270 , I don't recommend to trade inside this area today ,I'd like to see a clear break below 1.4000 level or above 1.4300 level , or if you're looking for a buy entry , you may buy with an hourly closing above 1.4310 , but the pair may pass this level quickly so you set can a pending order 15 or 20 pips above 1.4310 ?!! or the third option if you're not comfortable you may stay out today waiting for a clear break above 1.4310 or below 1.4000 level ?!!
Weekly support and resistance levels: (01 AUG - 05 AUG 2011)
Resistance: (1.4460) main, where correction is possible, break would test (1.4560), the next levels are (1.4760) and (1.4860)…For buyers the bullish zone is above 1.4460
Support :( 1.4250) main, where correction is possible, break would test (1.4150), the next levels are (1.4050) and (1.3950)…For sellers, the bearish zone is below (1.4250)...
The neutral zone is between (1.4250 - 1.4460) where it is recommended to evaluate activities on 60 min and 240 min.
The pivot level for this week is (1.4355)…
Weekly :use 1 hour and (4 hour ..recommended).
Above 1.4460 very bullish trend..
Between 1.4355 - 1.4460 light bullish trend.
Between 1.4150 - 1.4250 light bearish trend..
Below 1.4150 very bearish trend..
Trend Direction is Downward , the trend will remain valid as long as stability is below1.4310, a daily close above this level may lead for a bullish move towards 1.4400/500 levels…
The trading range for today probably would be between the support level 1.4100 and the resistance level 1.4400...
Recommendations : Upon the chart and the explanation posted above , my recommendation is observing trading today and waiting for updates for more confirmations ?!!!
Wednesday 03 AUG 2011 06:48 AM