EUR/USD Daily Forecast For May 4th / 2011

DAILY  FORECAST :

The EUR/USD is still in a Bullish situation indicated by the RSI(14) trading above 60 level and the ADX (14) at the 40 level (red: the Stong trending Momentum) and the price itself is between the two Upper Bollinger bands: periode 2 Deiviation 2 and periode two deviation 1, the pair traded in a ranging situation between 3 days low level and the 3 days high level at the 1.4754 level  to the 1.4801 level;  the pair started trading in a ranging and sideways situation indicated by the bar of April 28th / 2011 as a measuring bar and all the closing range of the next day is still in the range of those bars, this type of Sideways situation is called "Ledge" with 4 bars closing inside the Measuring Bars, usually at the fourth or the fifthe bar, the price will be broken out , especially on Friday during the US Data - Non Farm Payrolls. However, if on Friday the price does not break out , the pair will be trapped in a congestion situation. However, today if the EUR/USD can break out the 3 days low at the 1.4754, it will bring down the pair to the 1.4734 as the first target and the 1.4689 as the second target. On the other hand, if the pair can break out above the 1.4843, it will lead this pair to going up to the previous day high at the 1.4892 level.
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