Signal Trader - EUR/USD Daily Outlook, Mar 21, 2011

Technical Overview:
EUR/USD broke above the significant resistance of 1.404 on Friday.
As we wrote last week, a break above 1.401 is a significant bullish sign, and indeed the pair gained almost 200 pips after breaking it. It was blocked earlier today, during the Asian session, near the 1.42 resistance level.
Its short term bias is Bullish. However, the RSI on the Daily chart is approaching overbought level.
Therefore, our trading bias for today is Neutral.
We will wait for either a break above 1.42 to enter long positions or a break below 1.404 to enter short positions.

Trading Idea:
Best level to enter SHORT positions is around 1.403. Long positions should be taken should the pair break above 1.42.
Between 1.404 and 1.42 our bias is to stay out of the market.

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