Forexpros Daily Analysis - 18/04/2011
ForexPros Daily Analysis April 18, 2011
Technical Overview:
EUR/USD started the week with a massive selloff, pushing its price toward the significant support at 1.435, which held the bearish momentum for now. On the daily chart - the pair continues to move between the bands of the upward channel. The bulls came, once again, at the lower band of the channel, pushing the pair price a bit up toward 1.438.
The RSI indicator is no longer at overbought levels.
On the hourly chart there are many signs for bullish short term reversal.
The DI+ is on extreme low levels, which in the past resulted in a 200-300 pips move upward. Both RSI and MACD are signaling a completion of the downward short term trend and a reversal up.
At the current levels we are expecting a reversal up and taking LONG positions.
Trading Idea:
Best levels to enter LONG positions are between 1.435 and 1.438. Take profit should be located at around 1.45-1.452. Stop loss should be located at 1.432. In such case, breaking above 1.453, will bring us back to LONG.
SHORT positions should be taken by breaking below 1.432 with a stop loss at 1.437 and take profit at 1.426.
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Forex Trading analysis written by Dominic Bromley for Forexpros.
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Disclaimer:
Trading Futures and Options on Futures and Cash Forex
transactions involves substantial risk of loss and may not be suitable for
all investors. You should carefully consider whether trading is suitable for
you in light of your circumstances, knowledge, and financial resources. You
may lose all or more of your initial investment. Opinions, market data, and
recommendations are subject to change at any time.[/color]
