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.
Analysis by Signal Trader – the leading solution for Automated Trading. Autotrade on Forex, Indices and Commodities.
RISK WARNING: Trading foreign exchange (“Forex”), Commodity futures, options, CFDs and SpreadBetting on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial adviser if you have any doubts.
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.
Analysis by Signal Trader – the leading solution for Automated Trading. Autotrade on Forex, Indices and Commodities.
RISK WARNING: Trading foreign exchange (“Forex”), Commodity futures, options, CFDs and SpreadBetting on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial adviser if you have any doubts.
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