Technical Overview: Yesterday, the bullish momentum was blocked at 1.415. The pair was hovering around 1.41 and eventually dropped 50 pips to find support at the lower band of the channel. From the technical aspect – we see a good long opportunity at these price levels. First, the lower band of the channel succeeded in blocking latest downward moves. The pair found its immediate support on it at the end of the Asian session earlier today. In addition, 1.404 was March 7 and 4-month high and therefore should act as major support level now. Furthermore, looking at the Daily chart – the stochastic oscillator indicates that the upward trend has just started to gain momentum and it is in a classic pattern for further gains. Finally, looking at the CCI, we can see that the indicator is hovering around 0 mark. In many cases such behavior may indicate on finding support level. To summarize – we are positioning ourselves for a substantial move upward.
Trading Idea: Best levels to enter LONG positions are between 1.404 and 1.407, with Stop loss at 1.398. First target is at 1.421. A break above 1.422 will accelerate the Bullish momentum. SHORT positions should be taken only be breaking below 1.398.
Analysis by SignalTrader.com – the leading solution for Automated Trading. Autotrade on Forex, Indices and Commodities.
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