The EUR/USD raised up strongly yesterday but as shown in the chart above , the pair stopped at 1.4244 around 23.6% retracement , then declined strongly affected by the negativity of the hidden bearish divergence and broke below the uptrend line early this morning, buyers are trying to form strong support 1.4128 by pushing the pair up above the broken trend line but ....Yesterday's close - 1.4144 - was below the broken support level 1.4172 which is served now as strong resistance , probably this is normal test before the final drop but remember to keep chances of the downtrend available today , we need an hourly close below 1.4128 , then the pair will test 1.4048 , around this level  the pair is supposed to fluctuate strongly , a break below 1.4048 will attack 1.3900..

Technical resistance levels: 1.4170 - 1.4240 - 1.4320 - 1.4440
Technical support levels: 1.4050 - 1.3960 - 1.3880 - 1.3800
Trading range: 1.4200 - 1.3900
Trend Direction: Downward

Recommendations: Upon the chart and the explanation posted above , my recommendation is selling the pair with an hourly closing below 1.4128 targeting 1.4050 and 1.3900 , stop loss 1.4185 ...

Best Regards

Haitham653

17 May 2011 06:57 AM