Forex Signals - EUR/USD Caution on Mixed Markets

By IBTimes Staff Reporter | April 27 2010 12:32 AM

I then looked for the aggressive long after the gravestone doji just pierced my aggressive signal support at 1.3315. I was concerned that I would not get to enter - the doji closed at 1.3335 and I was not going to enter that high as I could not hide my stop loss under 1.3290 and still get a solid risk/reward ratio at that level - but the priced dropped far enough to trigger my buy at 1.3320. That lots TP was eventually hit just under the strong 1.3400 resistance at 1.3395 for 75 pips profit.

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Daily Outlook: Signals are a bit more mixed today as the pair closed a bit more bullish on the day but failed to close above 1.3400 resistance on both the 4h and daily charts. It nearly formed a bearish hanging man on the daily charts but the body is too big. Yesterday I was leaning bearish on the pair because of the bearish candlesticks on the 4h and today I am literally about 60/40 with a slight lean toward the bulls.

On a side note this a great example of how technical analysis is supposed to show the fundamentals: right now fundamentalists are mixed on Germany's latest reaction to the possible Greek bailout, the financial overhaul and the positive US economic news and that is showing on the charts with mixed candlesticks, broken support/resistance and random ranges.

Trading Idea: I will continue with the same trade plan as yesterday - I will look for shorting opportunities under 1.3400 (with additional candlestick confirmation - yesterday's don't count!) as long as there is no sustained break above 1.3400 (close on 4h). Keeping stop tight and will not enter unless I can get a solid risk/reward ratio - I'm not about to throw away my hard-earned pips from yesterday. Short targets from 1.3400 same as yesterday - 1.3375, 1.3340, 1.3315 for 85 pips profit.

I will also look for a long opportunity around 1.3315-1.3290 and a long on a sustained break above 1.3400 (on 4h charts). Signals are very mixed right now piphutters - wait for confirmation and good risk/reward setups. Patience pays.

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P.S. Sorry if I've been slow in responding to emails or missed some comments recently. I've been very, very busy with some services I'll be rolling out in the next few weeks, and that effort has been hampered with trying to keep up with the popularity of the new friends features. I'm glad everyone is loving PipHut so much but remember that I am a one-man show at the moment (except for all the PipHut regulars, who I love dearly for helping out with beginner questions!!!)

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Source: Forex Signals - EUR/USD Caution on Mixed Markets Forex signals from: PipHut.com