Signaltrader.com - Eur/usd Daily Outlook, Apr 4, 2011

[SignalTrader]

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.

Analysis by SignalTrader.com – the leading solution for Automated Trading. Autotrade 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.

[SignalTrader]

Technical Overview:

After failed in breaking above the resistance of 1.426, EUR/USD is consolidating around 1.4175, its current critical support level. Looking at the daily chart, the lower band of the upward channel, which supported the bullish trend in the past 2 months, is at 1.4165.

In addition, looking at the 30-minute chart, we can clearly see that the pair is hovering around a major support. Its short term resistance is at around 1.421.

We are still bullish on EUR/USD and holding our long positions. First short sign will be a break below 1.416. More significant sign will be a break below 1.4135, where we are placing our stop loss.

Trading Idea:

Best levels to enter LONG positions are between 1.417 and 1.419, with a stop loss at 1.4135. Take profit should be placed at 1.421, 1.426 and 1.4305.

SHORT positions should be taken only be breaking below 1.414 with a first target of 1.406 and stop loss at 1.4205.

Analysis by SignalTrader.com – the leading solution for Automated Trading. Autotrade 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.

[SignalTrader]

Technical Overview:

Yesterday, we marked the area between 1.417 and 1.419 as a good area to enter long positions. There was a massive attempt yesterday by the bears, which was blocked at around 1.415, far enough from our stop loss. The bulls won that battle and the price soared toward 1.428. We are closing half of our long positions at the current level of 1.427. The target for the second half is at around 1.431. Stop loss for the rest of the position is placed at 1.424 to secure profits.

The lower band of the upward channel, once again, supported the bullish trend. We are attaching a 30-minute chart, which shows exactly why the downward momentum was blocked at 1.415-1.416. Although the short term trend is still bullish, we are very cautious at these levels.

Trading Idea:

Best levels to enter LONG positions are only by breaking above 1.431. Target in such case should be 1.436 with a stop loss at 1.4265.

SHORT positions should be taken by breaking below 1.424 with a stop loss at 1.429 and take profit at 1.4175.

Analysis by Signal Trader – the leading solution for Automated Trading. Autotrade 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.

[SignalTrader]

Technical Overview:

EUR/USD rally continued and accelerated yesterday, surpassing our target of 1.431, in which we cleared our long positions. The bears finally succeeded in blocking the rally at 1.435. You can see this battle and victory of the bears clearly on the 30-minute chart (the red band). At the current levels our short term bias is neutral. Ahead of the ECB rate decision, in which the European central bank is expected to announce on its first rate hike for more than 2 years, the pair is hovering around 1.431 (the blue band).

We will return to long positions only should the pair break above 1.436.

Trading Idea:

Best levels to enter LONG positions are by breaking above 1.436. Target in such case should be 1.443 with a stop loss at 1.429.

SHORT positions should be taken by breaking below 1.4275 with a stop loss at 1.4315 and take profit at 1.42.

Analysis by SignalTrader.com – the leading solution for Automated Trading. Autotrade 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.

[SignalTrader]

Technical Overview:

In the last 2 days, EUR/USD tumbled more than 300 pips just to recover more than half of the loss, gaining more than 200 from the bottom. This technical behavior may signal one of the two: either the bearish short term momentum was a clear first sign of a medium term trend reversal or it was a psychological selloff, providing a good opportunity to go long. Should it is real – then the current rebound of the pair is a tremendous short opportunity. If it is not – the pair should stabilize above 1.44.

In our opinion, the sign IS real and the current level offers a great sell opportunity.

On the Daily chart, we can clearly see that for the first time in the last 4 months, the lower band of the upward channel failed to block the bears. From now on, it will be a resistance level and should block any bullish attempts to return into the channel.

On the Hourly chart the picture is bearish as well. Both the RSI and ADX indicators are signaling a reversal downward.

Trading Idea:

Best levels to enter SHORT positions are between 1.438 and 1.44. First target is at 1.426, where at least half of the position should be cleared. Second target is at 1.415. Third target is at 1.402.

Stop loss should be located at around 1.445.

LONG positions should be taken by breaking above 1.453 with a stop loss at 1.448 and take profit at 1.461.

Analysis by SignalTrader.com – the leading solution for Automated Trading. Autotrade 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.

[SignalTrader]

Technical Overview:

After setting a new 4-month high on last Thursday, EUR/USD price is moving between 1.45 and 1.46.

The medium term technical outlook is bullish. The short term technical picture is mixed.

On the Daily chart, the pair successfully returned into the upward channel and the moving averages are still arranged in a bullish structure.

On the Hourly chart the pair is hovering around the blue band, preparing itself for the next move.

We are waiting for either break above 1.464 or a break below 1.449 to enter a position.

Trading Idea:

LONG positions should be taken by breaking above 1.464, with a take profit at 1.471. Stop loss should be located at around 1.458.

SHORT positions should be taken by breaking below 1.449 with a stop loss at 1.455 and take profit at 1.4395.

Analysis by SignalTrader.com – the leading solution for Automated Trading. Autotrade 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.

[SignalTrader]

Technical Overview:

EUR/USD set a fresh 5-month high earlier today after the historical press conference of the FOMC yesterday.

From the fundamental point of view we think that the weakness of the USD is about to end. From the technical point of view we can see that the pair is way overbought.

On the Daily chart, the pair successfully reached the top band of the upward channel at 1.4883 before retreating 40 pips to its current level.

On the Hourly chart the pair reached the top band, which signals the end of the current short term bullish trend.

RSI is signaling a reversal.

At the current levels we are looking for a downward correction.

These SHORT positions will be for a longer term than usual and with a wider take profit.

Trading Idea:

SHORT positions can be taken anywhere between 1.483 and 1.488.

Take profit is between 1.466 and 1.47. Stop loss is at 1.494.

At the moment we are not looking for LONG positions at all.

Analysis by SignalTrader.com – the leading solution for Automated Trading. Autotrade 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.