Technical Analysis of EUR/USD:
EUR/USD yesterday broke its support 1.3480 decisively and today trading well below it. You might be thinking why 1.3480 level was important?? Because it was a imp Fibonacci 50% level of upside from 2009low to 2010high.
Yes, obviously just because one Fibonacci level is broken that doesn't mean it will go in downtrend. But the fact that it had broken weekly trendline on 4th sept2011, fell to 1.3150 level and come back to 1.4250 just to touch the broken trendline gives us the conviction that the correction is over now and the downtrend has been resumed from thereon.
Possibly after pullback rally to 1.3450 it should retest 1.3150 levels and if that is broken, 1.2900 levels could be seen. Besides,confirmation from indicators like RSI broke its trendline, MA crossover and signal below MA add to our bearish view.
So traders should look shorting opportunities in EUR/USD at arround 1.3400-3450 levels with stop at 1.3490 with a target of 1.3200. Positional traders can short at current levels with stop at 1.3500 with a target of 1.3150-1.2900.
*Disclaimer: Technical analysis is not 100% accurate. We will not be responsible for financial loss to our readers.
EUR/USD yesterday broke its support 1.3480 decisively and today trading well below it. You might be thinking why 1.3480 level was important?? Because it was a imp Fibonacci 50% level of upside from 2009low to 2010high.
Yes, obviously just because one Fibonacci level is broken that doesn't mean it will go in downtrend. But the fact that it had broken weekly trendline on 4th sept2011, fell to 1.3150 level and come back to 1.4250 just to touch the broken trendline gives us the conviction that the correction is over now and the downtrend has been resumed from thereon.
Possibly after pullback rally to 1.3450 it should retest 1.3150 levels and if that is broken, 1.2900 levels could be seen. Besides,confirmation from indicators like RSI broke its trendline, MA crossover and signal below MA add to our bearish view.
So traders should look shorting opportunities in EUR/USD at arround 1.3400-3450 levels with stop at 1.3490 with a target of 1.3200. Positional traders can short at current levels with stop at 1.3500 with a target of 1.3150-1.2900.
*Disclaimer: Technical analysis is not 100% accurate. We will not be responsible for financial loss to our readers.
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