Today’s trading technical analysis (tips) for EUR/USD 16 June 2011, we recommend, enter short position (Sell) in EURUSD below 1.4205 for target of 1.4165 and 1.4135 also place protective stop loss above 1.4225.
Reason to trade short: Yesterday EURUSD pair has lost about 1.8% falling from 1.4480 to 1.4155 levels. We see that their exists some support near 1.42 level as it is 23.6% Fibonacci level. From the current levels we are sure that the pair has gained enough momentum and will continue to fall. Again targeting the 1.3945 zone in short term. So for now we will be only looking for selling opportunity in this pair for our initial target of 1.3945 level. For intraday traders we will suggest to enter short positions only. If we look at technical indicators, RSI is now well directed and is showing bearish trend and suggest for entering short positions only as seen on 4 hour chart. Also we advice traders to keep their stop loss with 1:2 risk reward ratio. We can see further weakening in EURUSD pair.
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Do you expect more selling in euro?
I am short from 1.4375 levels, my target is 1.4075 a 300 pips profit.
Yes Jessica we are expecting more selling once euro trades below the 23.6% fibonacci level (1.42 level). Your trade setup is very correct and you will surely make those 300pips profit from this trade, also we will advice you to keep the trailing stop loss instead of manual stop. Thanks for discussing your trade.
Regards,
OurNifty.com Team