ForexPros Daily Analysis April 18, 2011
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Start: Tue, Apr 26, 2011, 10:00 EST
End: Tue, Apr 26, 2011, 11:00 EST
A review of the top fundamental news events over the prior month, and a look ahead at the news that could influence the foreign exchange market over the coming weeks.
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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.
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.
Forex Trading Analysis written by Dominic Bromley for ForexPros. For more information about currency charts visit ForexPros.
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