The EUR/USD declined as suggested in yesterday's report not only towards 1.4440 level , but also broke below this level and stopped around EMA200 on my 60 min chart and around EMA 50 on my 240 min chart , wait a minute , let's explore the picture a little bit !!!
The bullish breakout on daily was confirmed by CCI at 1.4551 , so the pair should test 1.4440 / 1.4327 or may be further 1.4236,before going up towards 1.4720 , where the pair is going to stop , let's shift down to the 4 hour and 1 hour !!
CCI on 4 hour confirmed the bearish breakout , it suggests now a test to the area 1.4458/1.4498 before falling towards 1.4327 , RSI on 1 hour also gave us one of the strongest breakouts , it suggested a test to the area 1.4440/1.4458 before falling towards 1.4327 BUT..
I prefer waiting for a bullish pattern on 1 hour chart , any reversal pattern , ex bullish divergence , a break above the bearish trend line and so on , then I'll go long or if the pair flies today , I'll wait for a clear break above 1.4560...
Anyway , keep in mind that we have strong support around EMA50 on daily - currently around 1.4370 - but if you like to short the pair I'd like to see a daily close below 1.4428 or at least a four break below 1.4400 , it supposed to open too many doors to test 1.4250 level!!!
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..
Trend Direction is Upward , the trend will remain valid as long as stability is above1.4428,technical targets are around 1.4750 and 1.4940 , a daily close below this level may lead for a bearish move towards 1.4350/1.4250 levels…
Recommendations : Upon the chart and the explanation posted above , my recommendation is observing trading today and following the daily updates for more confirmations !
Wednesday 06 July 2011 06:06 AM