(EUR/USD Daily Outlook 08 Feb 2012)
As expected in previous reports, the pair managed to break above 1.3200 levels yesterday, since we have strong bullish momentum on daily and weekly.
If you check the four hour chart, we have a bull flag pattern, yesterday we had a break above this pattern “trend continuation “.
What I was caring about yesterday was the close?!!
According to the daily chart, we needed to watch these levels:
1.3190 & 1.3252:
A daily close below 1.3190 was supposed to take us down towards 1.3085/1.3022.
A daily close above 1.3190 and below 1.3252, yesterday was - 1.3246 – supposed to test 1.3190 before heading toward 1.3313?
Now we need to watch these levels on daily chart:
1- 1.3190; a daily close below this level may test 1.3085/1.3022 once again?!
2-1.13190 – 1.13252; stability with daily close between these 2 levels, is supposed to make the pair range between 1.3140 – 1.3313.
3-1.3252; a daily close above this level would range the pair between 1.3190 – 1.3345
4-1.3313; a daily close above this level would range the pair between 1.3252 – 1.3395
Well, the daily chart suggests a test to 1.3190 before heading toward 1.3313, by checking the intraday time frames , RSI on 30 min chart, suggests a test to 1.3195 before heading toward 1.3300 levels, CCI on 60 min chart suggests a test to 1.3181 before heading towards 1.3300 levels, so I see we have a good entry around 1.3190 ?!!
Trend Direction is Upward, the trend will remain valid as long as the daily close is above 1.3022, technical targets are around 1.3313 & 1.3395
Trading range: 1.3170: 1.3300
Support: 1.3190, 1.3138, 1.3085
Resistance: 1.3252, 1.3313, 1.3395
Recommendations: Upon the chart and the explanation posted above; my recommendation is buying the pair at 1.3190 targeting 1.3255 & 1.3315, stop loss at 1.3090
Note: The fact is according to breakout rules, we may buy the pair 15 pips above yesterday’s high , or with an hourly close above it 1.3269 but the other fact we don’t have a daily close above 1.3252 yet EMA 100 on daily , so it’s risky too much since we need to use high stop lose ?!
Strong buy entry on EUR/USD this week, buy the pair around EMA 200 on 30 min chart?!!!
(Silver Daily Outlook 08 Feb 2012)
The silver pulled back - from the suggested level yesterday at 33.15 – strongly and breached above the critical resistance on daily 33.93 for the second time?!
RSI on 30 min chart suggests a test to 34.03 before heading to 34.50 at least but it's risky to buy around this level, on 60 min chart we don’t have a bullish breakout yet, so the 60 level of RSI on hourly chart my push the pair down towards 33.75/40 but I’d like to follow the daily chart?!!
According to the daily chart we have 2 options:
1-The pair may test the area around 33.93 before flying toward 35.00 levels, my stop would be below 33.40 like 33.10.
2- The pair may test 33.40 before heading towards 34.40/50, my stop 33.50.
For me ,I’ll pick up the second one , we have strong support on daily at 32.78 , another one on weekly at 32.80 , so I guess this area is unbreakable in short term ?!!
Trend Direction is Upward, the trend will remain valid as long as the daily close is above 32.80 technical targets are around 36.60 levels.
Trading range: 33.00: 34.50
Support: 33.93, 33.40, 32.80
Resistance: 34.40, 34.75, 35.35
Recommendations: Upon the chart and the explanation posted above; my recommendation is buying the pair at 33.40 targeting 34.30, stop loss at 32.60.
Wednesday 08 Feb 2012 06:44 AM