Technical Overview:
During the Asian session, EUR/USD touched the lower band of the upward channel and bounced back toward 1.4075.
Although the short term downward momentum is still alive, we are very cautious with taking short positions.
The lower band of the channel, as well as the 1.403-1.404 support area, are inviting us to take a short term long positions, with a tight stop. However, we will wait for a pull back before entering such a position. Only a break below 1.401 will be a short signal for us.
Trading Idea:
Best levels to enter LONG positions are between 1.404 and 1.4055, with Stop loss at 1.4005.
SHORT positions should be taken only be breaking below 1.401, with a stop loss at 1.408. Target for such a break will be 1.386
Analysis by SignalTrader.com – the leading solution for Automated Trading. Autotrade on Forex, Indices and Commodities.
RISK WARNING: Trading foreign exchange (“Forex”), Commodity futures, options, CFDs and SpreadBetting on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial adviser if you have any doubts.
During the Asian session, EUR/USD touched the lower band of the upward channel and bounced back toward 1.4075.
Although the short term downward momentum is still alive, we are very cautious with taking short positions.
The lower band of the channel, as well as the 1.403-1.404 support area, are inviting us to take a short term long positions, with a tight stop. However, we will wait for a pull back before entering such a position. Only a break below 1.401 will be a short signal for us.
Trading Idea:
Best levels to enter LONG positions are between 1.404 and 1.4055, with Stop loss at 1.4005.
SHORT positions should be taken only be breaking below 1.401, with a stop loss at 1.408. Target for such a break will be 1.386
Analysis by SignalTrader.com – the leading solution for Automated Trading. Autotrade on Forex, Indices and Commodities.
RISK WARNING: Trading foreign exchange (“Forex”), Commodity futures, options, CFDs and SpreadBetting on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial adviser if you have any doubts.