With Yesterday close 133.60 the pair breached below EMA 50 on daily chart and added strong negativity to the pair , the most thing that need to be watched yesterday's low 132.92 , we only need a daily close below this to support the bearish wave ?!!
Technically , Macd is below the zero line ( today candle ) , RSI bullish trend line was broken before 2 weeks ago , now the RSI forms new bearish trend line , the pair is moving below this trend line and below the 50 line (strong negativity )...BUT CCI is extremely over-sold , so it may push the pair up strongly toward EMA 50 to get rid of any positivity , and get ready to BREAK below the critical support 132.92...
Keep in mind , the support level 132.92 is valid as long as the daily close is below EMA 50 , a daily close above EMA 50 will range the market around 135.00 level and the support level 132.92 won't work any more ?
But a daily close below 132.92 is gonna attack Fibo 161.8 correction around 128.50 , then the pair's gonna range for awhile around 128.50 to take its breath, then our next target around 121.50 Fibo 261.8 correction is supposed to be achieved in less than 48 hours ?!!!
Recommendation :Upon the chart and the explanation posted above , my recommendation is selling the pair with a daily closing below 132.92 targeting 128.50 and 121.50 , stop loss at 135.30..
Wednesday 04 May 2011 10:17 AM