EURUSD & Silver Outlook 02 FEB 2012

EUR/USD Daily Outlook 02 FEB 2012

The EURO pulled back from 1.3060 levels towards 1.3200 levels after breaking of 1.3115 as suggested in yesterday’s report, it was unable to make any move below the main support on weekly 1.3000 add to that the EMA 50 on daily still protecting the upward trend.

What would happen today?

We need to watch these levels carefully: 1.3006, 1.3066, 1.3112 and 1.3200, 1.3260, 1.3325

Yesterday, 1.3115 was the separated level between going up or down?

So, today we need to watch1.3112, breaking of 1.3112 may test 1.3006, pulling back from 1.3112 may test 1.3200 once again?!! Last night the pair found support around 1.3150 , so breaking of 1.3150 may lead for a limited bearish move towards 1.3100 levels but the major level for today is 1.3112?!!

An hourly close above 1.3200 is supposed to test 1.3260; breaking of 1.3260 would test 1.3325

Remember, a daily close above 1.3200 is supposed to take us towards 1.3325 & 1.3550 in medium term, a daily close below 1.3006 is supposed to take us towards 1.2875 & 1.2600 in medium term?!!

Conclusion: a daily close below 1.3200 may test 1.3000 once again; testing 1.3000 with a daily close above 1.3000 may test 1.3200 once again?!!

Trend Direction is Upward, the trend will remain valid as long as the daily close is above 1.3006, technical targets are around 1.3260 & 1.3325.

The trading range for today probably would be between the support level 1.3000 and the resistance level 1.3200

Support: 1.3112, 1.3066, 1.3006

Resistance: 1.3200, 1.3260, 1.3325

Recommendations: Upon the chart and the explanation posted above my recommendation is buying the pair with hourly close above 1.3200 targeting 1.3260 & 1.3325, OR buying the pair around 1.3006 targeting 1.3110 & 1.3200 , stop loss at 1.2920 or stop out with an hourly close below 1.3006?!

Silver Daily Outlook 02 FEB 2012

The silver is trapped between 32.74 and 33.92 , the EMA 200 is protecting the upward trend on daily chart , so losing 32.74 may test 31.00 levels , breaking above 33.92 would test 40.00 levels in medium term ?!!

Yesterday, the pair pulled back from the suggested level around 33.10 towards 34.00 levels, but it was unable to make any close above 33.92 especially the daily, so we may test 33.00 once again?!!!

Support: 32.25,32.75, 33.10

Resistance: 33.40, 33.92, 34.55

Recommendations: Upon the chart and the explanation posted above; my recommendation is buying with an hourly close above 33.92 targeting 34.55 & 36.25 , stop loss at 33.30 , OR buying the pair at 33.00 targeting 34.10, stop loss at 32..45

Best Regards

Haitham653

Thursday 02 Feb 2012 08.24 AM

Tags: EUR, EUR/USD, Silver, Tags:, USD, XAG/USD

3 members like this

Comment by No more on February 2, 2012 at 8:40am: Thanks Haitham for outlook.

Comment by Haitham653 on February 2, 2012 at 9:05am: Thanks Aleksey.. U R welcome..

Comment by elanthiraiyan on February 2, 2012 at 9:16am: i have been following ur blog for a while... for beginner like me its good for learning... i want to ask u one question why close is important? sometimes such close leads to fake close y?

Comment by protrade on February 2, 2012 at 10:45am: Hello Mr.Haitham what happens with the euro? It's up above to 1.3185 and then drop again to 1.3140 support. Can we buy now or wait for hourly close above 1.3200?

Comment by Bruno on February 2, 2012 at 1:10pm: wait for NY open

Comment by No more on February 2, 2012 at 1:29pm: Thanks Haitham for outlook again, tooked good profit.

Comment by Haitham653 on February 2, 2012 at 2:42pm: Hello elanthiraiyan..

The Close is very important, because during any period , 1 hour , 4 hour..etc, before the close we may get a pattern and after the close this pattern might change to something different ?!!

Also the close means stability above / below support / resistance during the specific period, close is very effective and powerful with bigger time frames like 4 hour and above..

False close/ breakout usually happens against the main trend , take this example :

Yesterday , we had head and shoulders pattern on 4 hour ,the neckline 1.3072 was broken with a 4 hour close below it , but that close / break was fake , because the pair was above EMA 50 on 4 and on daily , we needed at least 4 hour close below EMA 50 to support head and shoulders?!!

Comment by ROR on February 2, 2012 at 3:13pm: Hi Haitham don't know if it's a good trade if I make sell to silver now @33.85??? Plz advice thank u

Comment by Haitham653 on February 2, 2012 at 3:58pm: Hello ROR, sorry for late to reply , look at the chart of silver posted above , the level 33.37 serves as strong support today , so the pair may break above 33.92 ....it's risky too much ?!!

Selling silver around 33.92 is good when we go down below 33.37 test 33.00 then pullback and pass 33.37 , then the pair should stop for awhile around 33.92 this way we can scalp silver ?!!

Comment by Haitham653 on February 2, 2012 at 4:09pm: Our entry on Silver has been activated by closing above 33.92 , now the pair is supposed to fly towards 35.00 levels but it should pass 34.55 first ?!!

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