Technical Overview: As we predicted yesterday, the downward momentum continued and accelerated. EUR/USD rebound attempts were blocked exactly at the resistance area we mentioned of 1.4215. Once again, the RSI 70 level blocked the bullish momentum and after hovering around 1.42 the pair lost 150 pips. The pair is very close now to the next support of 1.404-1.405. Therefore, we just took profits at 1.4055 and we are waiting for either breaking below 1.402 to return to short position or a break above 1.4125 to enter long. The pair continues to move between the bands of the channel. The lower channel is now at around 1.399.
Trading Idea: Best levels to enter SHORT positions are between 1.401 and 1.402, with stop loss at 1.408. LONG positions should be taken only be breaking above 1.4125, with a stop loss at 1.4065 or at 1.404-1.4055 area, with a target at 1.409-1.411 and stop loss at 1.4015.
Analysis by SignalTrader.com – the leading solution of all the Forex Systems. Automated Trading on Forex, Indices and Commodities.
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