EUR/USD Daily Analysis: Price was able to move below 3550 last week, sustaining the bearish momentum we’ve seen in 2014 thus far. Pair continues to march downward after touching our intrayear falling resistance (blue line on weekly chart below) on weak strength (bearish RSI divergence on weekly charts), setting up the longer-term goal of re-challenging the red, intrayear rising support (red line) on our weekly chart below (currently down around 1.3250).
On the 4h charts the pair has been consolidating underneath 1.3550 (now resistance) though the latest stab at 1.35-3515 support produced a bullish RSI divergence, signaling that bullish momentum may be weakening.
EUR/USD 2" title="EUR/USD 2" align="bottom" border="0" height="242" width="474">
Our Preferred Trades*: Our primary setup is to sell into the trend on rallies above 1.3570 with bearish candlestick confirmation, targeting (at a minimum) another drop to 1.3515/3500 support with our SL hidden above 3600. If another drop to 1.3515 produces a bullish RSI divergence we will get long, targeting a rally toward 1.36 with our SL below 1.3480.
Yesterday’s EUR/USD SwingPRO Signal Result: No SwingPRO trades taken yesterday to report on.
Today’s SwingPRO Signal: We are looking to get short on support breaks above 3570 with a TP of 80 and a SL of 50.
*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and “our preferred trades.” For example, if we prefer “going short” or “selling a rally” then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer “going long” or “buying a dip” then we would look for bullish candlestick signals on price drops or near support levels.
Today’s Important News Events: