- EUR/USD Daily Outlook, Apr 4, 2011 - EUR/USD Daily Outlook, Apr 4, 2011

Postby SignalTrader » Mon Apr 04, 2011 7:39 am

Technical Overview:
EUR/USD is starting the trading week on an important price level. On Friday, once again, the bears were defeated by the bulls, which stood at the 1.404-1.406 level and blocked any break down attempt. The trend reversed and the rally was fueled by massive short covering pushing the pair to close near 5-month high.
This morning during the Asian session, the pair tested the next resistance level at 1.426-1.427 and bounced back.
Immediate support should be found at the previous resistance level between 1.4205 and 1.422.
The next support level is the lower band of the channel near 1.4155 level.
We are positioning ourselves for further rally at these levels.


Trading Idea:
Best levels to enter LONG positions are between 1.42 and 1.422, with a stop loss at 1.414. Take profit should be placed at 1.43, 1.433 and 1.439.
Consolidation around 1.421-1.422 will increase the chances to be followed by a significant move up toward 1.433.
SHORT positions should be taken only be breaking below 1.414 with a stop loss at 1.4205.

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