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SignalTrader.com - EUR/USD Daily Technical Outlook, Apr 18, 2011

Discussion in 'Forex Daily News & Outlook' started by SignalTrader, Apr 18, 2011.

  1. SignalTrader

    SignalTrader New Member

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    Technical Overview:
    EUR/USD started the week with a massive selloff, pushing its price toward the significant support at 1.435, which held the bearish momentum for now. On the daily chart - the pair continues to move between the bands of the upward channel. The bulls came, once again, at the lower band of the channel, pushing the pair price a bit up toward 1.438.
    The RSI indicator is no longer at overbought levels.
    On the hourly chart there are many signs for bullish short term reversal.
    The DI+ is on extreme low levels, which in the past resulted in a 200-300 pips move upward. Both RSI and MACD are signaling a completion of the downward short term trend and a reversal up.
    At the current levels we are expecting a reversal up and taking LONG positions.

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    [​IMG]

    Trading Idea:
    Best levels to enter LONG positions are between 1.435 and 1.438. Take profit should be located at around 1.45-1.452. Stop loss should be located at 1.432.
    In such case, breaking above 1.453, will bring us back to LONG.
    SHORT positions should be taken by breaking below 1.432 with a stop loss at 1.437 and take profit at 1.426.

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