Signal Trader - EUR/USD Daily Outlook, Apr 6, 2011

Technical Overview:
Yesterday, we marked the area between 1.417 and 1.419 as a good area to enter long positions. There was a massive attempt yesterday by the bears, which was blocked at around 1.415, far enough from our stop loss. The bulls won that battle and the price soared toward 1.428. We are closing half of our long positions at the current level of 1.427. The target for the second half is at around 1.431. Stop loss for the rest of the position is placed at 1.424 to secure profits.
The lower band of the upward channel, once again, supported the bullish trend. We are attaching a 30-minute chart, which shows exactly why the downward momentum was blocked at 1.415-1.416. Although the short term trend is still bullish, we are very cautious at these levels.





Trading Idea:
Best levels to enter LONG positions are only by breaking above 1.431. Target in such case should be 1.436 with a stop loss at 1.4265.
SHORT positions should be taken by breaking below 1.424 with a stop loss at 1.429 and take profit at 1.4175.

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