The EURUSD continued its bearish momentum yesterday, bottomed at 1.2720, topped at 1.2869 and closed at 1.2734
According to the daily RSI, bearish breakout has been confirmed at 1.2815 low of 14 May 2012 , suggests a test to 1.2900 before going down towards 1.2500 levels BUT next day (Yesterday) the pair resumed falling and breached below the previous low (1.2815) , this scenario is supposed to delay rising towards 1.2900 and It would accelerate the down-move testing 1.2625
Today I assume a bearish move testing the key support 1.2625 , a clear break below this level would lead for more loses testing the key support 1.2490 .
Immediate resistance is seen around 1.2750 where bounce back to the down-side is expected , stability below the key resistance 1.2810 is indeed to keep the bearish trend strong and intact , breaking of 1.2810 would delay the bearish move testing the key resistance 1.2900 where also big and massive sell is expected after consolidation !
Recommendations: Sell the pair around 1.2730 , Stops at 1.2830 , Target around 1.2625 & 1.2490
Wednesday 16 May 2012 04:00 AM