Today’s trading technical analysis (tips) for EUR/USD 23 May 2011, we recommend, Enter short position only in (Sell) EUR/USD below 1.4115 for target of 1.4055 and 1.4015 also place protective stop loss above 1.4135.
Reason to trade short: EURUSD pair has witness free fall from 1.50 level to 1.40 level a fall of about 950 pips. This has changed the near term trend of EURUSD to bearish. Also the rumors that the Greece is about to leave the euro zone & the debit crisis are major contributors for EURO weakness. Also the declining commodities prices has made the USD strong, which made the USD strong across the board. We are now however bearish as long as the pair remains below the 1.42 level. So for now we will be only looking for selling opportunity in this pair for our initial target of 1.4025 zone. We will suggest traders to enter short positions only. If we look at technical indicators, RSI is now badly directed and is showing bearish trend and suggest for entering short positions only as seen on 1 hour chart. Also we advice traders to keep their stop loss with proper risk reward ratio. We can see further weakening in this pair, the down-trend must continue upto 1.4015 level and trading in the direction of the trend we recommend to trade short (sell) on this pair. I will be looking for selling opportunity as long as the pair remains below 1.42 level on daily chart for intraday basis.