The EURUSD tested the broken support - low of 03 Apr 2012 - at 1.3212 and declined strongly last Friday,by taking a quick look to 4 hour chart, bearish breakout has been confirmed at 1.3068 , suggests further losses but we need a clear break below the double bottom at 1.3033 to resume the down trend , a clear break below this level would test the key support level 1.2860..

Remember the pair is facing some challenges around 1.3080 area, we have the rising support of triangle , the daily RSI is still showing some positivity , also RSI on four hour hit the 40 levels , which suggests possible pullback, so as long as the pair is trading above 1.3033, strong pullback is suggested testing 1.3210 level, a clear break above this level would take us towards 1.3350 area , the declining resistance of triangle....

Conclusion :

1- A clear break above 1.3212 would delay the down-move testing 1.3300/1.3350 area , the pair will keep ranging between 1.3050 and 1.3300 area before the next destination.

2- A clear break below 1.3033 would resume the bearish trend testing at least the key support 1.2860, a clear break below this level would test 1.2600 area...

Best Regards

Saturday 14 Apr 2012 05:40 PM