Yesterday the pair closed above the broken support level 1.4172 and added more bullish momentum, so far the pair is still trading around 23.6 retracement 14260 and below EMA 50 currently 1.4322 , the pair is supposed to find strong resistance and decline strongly toward 138.2% extension around 1.3900 and 161.8% extension around 1.3700 ....shift down to the 4 hour , yesterday late or early this morning , the pair breached above the resistance line of the upward channel but momentum indicators are strongly overbought , also we had hidden bearish divergence , usually false breakouts come after hidden divergences ,the last chart is the 1 hour , possible bearish move or correction the next few hours followed by strong bullish move...
Technical resistance levels: 1.4170 - 1.4240 - 1.4320 - 1.4440
Technical support levels: 1.4050 - 1.3960 - 1.3880 - 1.3800
Trading range: 1.4300 - 1.4100
Trend Direction: Downward
Recommendations: Upon the chart and the explanation posted above , my recommendation is selling the pair with a daily closing below 1.4128 targeting 1.3900 and 1.3710 , stop loss 100 pips above your entry ....
18 May 2011 06:48 AM