Overbought EUR/USD and a Test of the 2010 Second Semester High

 @ibtimes
on March 21 2011 8:00 PM

CHF

The planned short positions from the key resistance range have been realized with achievement of the minimum assumed target. OsMA trend indicator, having marked low level of parties activity, doesn't introduce any certainty in relation to choice of priorities for today. Thus, presently, we assume a retracement to the nearest boarder of Ichimoku cloud at 0,9040/60, where it is recommended to evaluate activity development on the charts with smaller time frame. For short-term sales, on condition of formation of topping signals, the targets will be 0,8980/0,9000, 0,8920/40 and/or further breakout variant up to 0,8860/80, 0,8800/20. Alternative for buyers will be above 0,9100 targeting 0,9140/60, 0,9200/20.

GBP

The assumed retracement to the key supports for realization of long positions has not been confirmed, but the expected growth showed a factor of overbought conditions strengthening, which didn’t dispose to further rise without correction of the rate. Thus, presently, we assume a period of correction with boarder key supports at 1,6250/70, where it is recommended to evaluate activity development on the charts with smaller time frame. For short-term long positions, on condition of formation of topping signals, the targets will be 1,6320/40 and/or further breakout variant up to 1,6380/1,6400, 1,6440/60, 1,6500/20. Alternative for sales will be below 1,6180 targeting ,6120/40, 1,6060/80.

JPY

Substantial drop of both parties’ activity according to OsMA trend indicator doesn’t allow to apply previous trading plans for today. Thus, we assume a possibility of retracement to supports 80,20/40, where it is recommended to evaluate activity development on the charts with smaller time frame. For long positions, on condition of formation of topping signals, the targets will be 80,80/81,00, 81,40/60, 81,80/82,00 and/or further breakout variant up to 82,40/60, 83,00/20, 83,60/80. Alternative for sales will be below 79,40 targeting 78,80/79,00, 78,20/40, 77,60/80.

EUR

The planned long positions from the key supports have been realized with overlapping of the minimum and basic target. OsMA trend indicator, having marked further drop of parties’ activity, doesn’t introduce any certainty in relation to choice of priorities for today according to the chosen strategy. Thus, presently, according to perspectives of range movement of the rate, we assume a possibility of retracement to the nearest supports 1,4180/1,4200, where it is recommended to evaluate activity development on the charts with smaller time frame. For short-term long positions, on condition of formation of topping signals, the targets will be 1,4240/60, 1,4280/1,4300 and/or further breakout variant up to 1,4340/60, 1,4400/20. Alternative for sales will be below 1,4100 targeting 1,4040/60, 1,2980/1,4000.

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