Signal Trader - EUR/USD Daily Outlook, Mar 22, 2011
Technical Overview:
Yesterday, EUR/USD broke above the resistance of 1.42. This is a significant Bullish sign and was a signal to enter long positions.
Its short term bias is Bullish. The immediate target is the 14-month high of 1.4281.
A break above 1.428 will be another bullish sign, which will make the target for the pair at 1.45.
However, the area between 1.426 and 1.428 is full with resistances. Therefore – some of the profits should be taken at that level.
The RSI on the Daily chart is hovering around overbought level. However, unlike the classic technical books, a break above 70 may actually accelerate the bullish trend.
Trading Idea:
Best levels to enter LONG positions are between 1.42 and 1.423.
Stop loss should be placed at around 1.418.
Part of the position should be closed at the first target of 1.428 should the pair reach it.
Only a break below 1.404 will be a short signal.
Analysis by SignalTrader.com – the leading solution of all the Forex Systems. Automated Trading 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.
Yesterday, EUR/USD broke above the resistance of 1.42. This is a significant Bullish sign and was a signal to enter long positions.
Its short term bias is Bullish. The immediate target is the 14-month high of 1.4281.
A break above 1.428 will be another bullish sign, which will make the target for the pair at 1.45.
However, the area between 1.426 and 1.428 is full with resistances. Therefore – some of the profits should be taken at that level.
The RSI on the Daily chart is hovering around overbought level. However, unlike the classic technical books, a break above 70 may actually accelerate the bullish trend.
Trading Idea:
Best levels to enter LONG positions are between 1.42 and 1.423.
Stop loss should be placed at around 1.418.
Part of the position should be closed at the first target of 1.428 should the pair reach it.
Only a break below 1.404 will be a short signal.
Analysis by SignalTrader.com – the leading solution of all the Forex Systems. Automated Trading 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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