The EUR/USD declined this morning towards the support level 1.4440 affected by the negativity of momentum indicators on 1 hour chart , MACD ; bearish divergence , RSI broke below the trend line and below the 50 line , CCI breached 2 times below -100 while was unable to breach above the +100 , the meaning :
This could be one of the 2 options:
1- This is normal correction , the pair is testing the support level (1.4447/1.4467) - buy zone- before pulling back towards 1.4550 , a clear break above this level would take us towards 1.4720..
2-The pair almost ready to break below 1.4447/1.4467 , a break below this level would test 1.4400 , a clear break below the last one , may test these levels 1.4328/1.4236/1.4155...
By checking the 4 hour chart , we still in upward trend , but the problem is that ,B,Band is not expanding yet , so ..we may witness a strong move at the opposite direction , I'd like to see the pair below 1.4400 or above 1.4550 finally it's up to you !!!
Weekly support and resistance levels: (04 Jul - 08 Jul 2011)
Resistance: (1.4720) main, where correction is possible, break would test (1.4880), the next levels are (1.5040) and (1.5200)…For buyers the bullish zone is above 1.4720
Support :( 1.4405) main, where correction is possible, break would test (1.4245), the next levels are (1.4085) and (1.3925)…For sellers, the bearish zone is below (1.4405)...
The neutral zone is between (1.4405 - 1.4720) where it is recommended to evaluate activities on 60 min and 240 min.
The pivot level for this week is (1.4560)…
Weekly :use 1 hour and (4 hour ..recommended).
Above 1.4720 very bullish trend..
Between 1.4560 - 1.4720 light bullish trend.
Between 1.4405 - 1.4560 light bearish trend..
Below 1.4405 very bearish trend..
Since this week pivot 1.4560 is between the monthly pivot 1.4475 and the monthly resistance 1.4680 we have a light bullish trend , the pair may test/ stop around 1.4680 this week !!!
Trend Direction is Upward , the trend will remain valid as long as stability is above1.4410,technical targets are around 1.4750 and 1.4940 , a daily close below this level may lead for strong bearish move towards 1.4000 levels…
Recommendations : Upon the chart and the explanation posted above , my recommendation is observing trading today and following the daily updates for more confirmations !
Tuesday 05 July 2011 06:54 AM