Forex Signals - EUR/USD Bulls Make a Run For It

By IBTimes Staff Reporter | March 15 2010 1:02 AM

Daily Outlook: The war of words between China and US about the yuan's pegging failed to start the market off with a bang and fundamentally, as the pair has been for weeks now, traders are seeking direction. In fact in light of the mixed (short-term) fundamentals I view the breakout on Friday as less of a breakout and more that the pair has found a decent fair market value - i.e a range.

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Technically though it was a very bullish break especially in combination with the triple dojis on the weekly charts and, if I enter the market, it will be in the form of a long. A setup I will watch closely is a dip to the (former) resistance between 1.3660 and 1.3690. The more conservative trade is the dip to support trend line (bottom blue line on the bottom of the chart).

Trading Idea: Primary strategy is to watch a dip to rising support, currently around 1.3600. If it reaches this level it will be a 130+ pip drop and near the pair's maximum range recently. From 1.3600 long targets are 1.3625, 1.3655 and 1.3690. The more aggressive setup, if it presents itself is to buy on a dip to 1.3660-1.3690 support range (ideally it would also touch former daily resistance trend currently at 1.3680). Long targets from 1.3660 are 1.3690, 1.3730, and 1.3760.

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Source: Forex Signals - EUR/USD Bulls Make a Run For It Forex signals from: PipHut.com