Monday, March 26, 2012

EURUSD Setup For Next Week

The pair closed above 1.3240 (2% deviation/envelopes of 50 week EMA) this week, forced me to question the bearish potential. The more I gaze at this weekly chart, the more I suspect a strong bullish candle for next week. However, there is a possibility of a gap below 1.3240 when the market open tomorrow. IF that is the case then I'm gonna shift back to bearish view on this pair.

IF the pair open at the same level, then 1.3285/90 is the immediate resistance (H4 chart) and 1.3500 above that. Support could be seen around 1.3240 and 1.3150. The 2-week rising trend line may also provide a minor support.

I leave multiple short position over the weekend. I haven't been able to decide how I deal with those open trades; either I add more positions (averaging) or accept the losses. I really wanna keep those shorts as I believe that the trend is still down on the intermediate scale (4 hour time frame). Close above 1.3290 will confirm trend reversal with risk at 1.3150.