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Friday, May 27, 2011

EUR / USD 123 Pattern and possible change of direction May 27, 2011

:: 4 H ::

EUR / USD shows possible change in short/mid term direction on the 4H timeframe
Pattern 1 2 3 with broken high ( 2 ) gives warning early to very possible change in short term direction
We had strong breakout of the bearish channel this morning which changes the bearish view for the day at least
For the long term view we need to see 1.4350 level breached next swing up in order to change our long term view as well to bullish
Divergence on the MACD indicates coming upside movement .
:: 1H ::

The EUR / USD is trending up recently on the 1H timeframe making higher highs and higher lows indicating this possible change in direction
Best levels to BUY from are :
- 23% Fibonacci and previous broken high now support at 1.4200
- 50% Fibonatcci , previous double top now support , short term uptrend  at 1.4120
Direction of the MACD to the upside enhances the up direction at least for the short term scale .
Targets for the BUY positions are 1.4272 as 1st target  then1.4330 as a 2nd target
SL should be put below 1.4010 as its break indicates breaching of of the newly formed uptrends .

http://instaforex.com/forex_analysis/29543/?x=OUE  

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