Today’s trading technical analysis (tips) for EUR/USD 5 May 2011, we recommend, Enter long position only in (Buy) EUR/USD above 1.4855 for target of 1.4885 and 1.4905 also place protective stop loss below 1.4835.
Reason to trade long: The pair has been trading in tight range of 1.4800 – 1.4875 but yesterday we saw a break above this range towards 1.4950 level. Hence we are looking for buying opportunity in this pair for our initial target of 1.50 zone. But we will be trading with caution as the fundamental news from BoE interest rate decision and also the ECB interest rate decision is likely to cause huge volatile moves in market. We will suggest traders to enter long positions only. If we look at technical indicators, RSI is now well directed and is showing bullish trend and suggest for long positions only as seen on 4 hour chart. Also we advice traders to keep their stop loss tight. We can see further strengthening in this pair, the up-trend must continue upto 1.50 level and trading in the direction of the trend we recommend to trade long (buy) on this pair. I will be looking for buying opportunity as long as the pair remains above 1.4845 level on 4 Hour chart for intraday basis.