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Signal Trader - EUR/USD Daily Outlook, Mar 22, 2011

PostPosted: Tue Mar 22, 2011 8:35 am
by SignalTrader
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.

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