The EURUSD continued its bullish momentum yesterday bottomed at 1.3175, topped at 1.3262 and closed at 1.3191, but that bullish move was limited and the pair was rising with low momentum as shown on the daily and the 4 hour chart...

Today I assume massive bearish move testing at first the key support 1.3103 , losing this level would lead for the expected massive bearish move testing the key support 1.2994..

Immediate resistance is seen around the key resistance 1.3200 where bounce back to the downside is expected , stability below the key resistance 1.3295 is indeed to keep the bearish move suggested for today valid, breaking of 1.3295 would mix up things and may lead for more gains towards 1.3385 before the next fall...

Recommendations: Sell around 1.3200, stop at 1.3305 , target 1 at 1.3110 , target 2 at 1.3000

Best Regards..

27 Apr 2012 05:00 AM

Views: 1024

Comment by naivetrader1 on April 27, 2012 at 8:22pm

Thanks for that Haitham. May I ask, in the light of inter market relationship, do you expect similar drop in equity as well? As it's also linked to USD. I'm trying to get my head round this. Hope you would appreciate....... Weekend is the best time to do some thinking!!!

Comment by Haitham653 on April 30, 2012 at 4:02pm

Hello naivetrader1, sorry for late to response !!!

Yes I expect similar drop in equity ..

Comment by Haitham653 on April 30, 2012 at 4:08pm

Today is the last day of April 2012 , a monthly close below 1.3211 low of Nov 2011 would give us a trend continuation in medium term testing 1.2500/1.2000 levels the rest of the year...but a daily close below the key support 1.3180/170 is indeed to resume the downtrend...

Last year on the 5th of may 2011 , the EURUSD dropped 500 pips in mater of 48 hours , will history repeat itself next week, also next week is elections on Greece ?!!

Comment by Haitham653 on April 30, 2012 at 4:28pm

Check the daily chart below , for the last 7 days , the pair keeps rising while %R keeps falling showing lost of momentum !!!! 



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