The EUR/USD broke up yesterday above the sloping resistance line inside the rising wedge pattern and tested 1.4384 last night..
The bullish breakout has been confirmed on 1 hour at 1.4262 showing a light bullish trend at short-term , RSI , CCI and MACD confirmed the bullish breakout , BUT RSI suggests a bearish correction toward 1.4290 -1.4262 or a consolidation before the next destination ..
On 4 hour the pair is about to form a strong bullish pattern a four hour close above 1.4426 would be a real threat for the downtrend in medium term and it may attack 1.4750 !!!!
So stability below 1.4400 is indeed to keep chances of the down-move available this week ..
Anyway I recommend to trade only on 15 min and below to minimize risk and only short with a break below the support of the rising wedge on 1 hour as shown on the chart posted above...
The daily trend in medium term is bearish , the 4 hour is range , the one hour is bullish , so the market is mixed ...Be careful ...
Weekly support and resistance levels: (20-24 June 2011)
Resistance: (1.4400) main, where correction is possible, break would test (1.4540), the next levels are (1.4680) and (1.4820)…For buyers the bullish zone is above 1.4400
Support :( 1.4115) main, where correction is possible, break would test (1.3975), the next levels are (1.3835) and (1.3695)…For sellers, the bearish zone is below (1.4115)...
The neutral zone is between (1.4400 - 1.4115) where it is recommended to evaluate activities on 60 min and 240 min.
The pivot level for this week is (1.4257)…
Since the weekly pivot is below the monthly, a strong bearish move on the horizon, a daily close below this level will support the downtrend....
Weekly :use 1 hour and (4 hour ..recommended).
Between 1.4257 - 1.4400 light bullish trend.
Above 1.4400 very bullish trend..
Between 1.4257 - 1.4115 light bearish trend..
Below 1.4115 very bearish trend..
Daily support and resistance levels: (21 June 2011)
Resistance: (1.4425) main, where correction is possible, break would test (1.4490), the next levels are (1.4555) and (1.4620)…For buyers the bullish zone is above 1.4425
Support :( 1.4300) main, where correction is possible, break would test (1.4235), the next levels are (1.4175) and (1.4115)…For sellers, the bearish zone is below (1.4300)...
The neutral zone is between (1.4425 - 1.4300) where it is recommended to evaluate activities on 60 min and below.
The pivot level for today is (1.4365)…
Since the daily pivot is above the weekly , we still have a light bullish trend ,BUT the pair may find strong resistance around 1.4365 /1.4425 and decline strongly toward 1.4115...
Trend Direction is Downward, the trend will remain valid as long as stability is below 1.4425, a daily close above this level may weak the downtrend and lead for bullish correction towards 1.4700 levels…
Note: If today close is above 1.4426 , the may break above 1.4750 within 24-48 hours..
Recommendations: Upon the chart and the explanation posted above , my recommendation is observing trading today for more confirmations..