Signal Trader - EUR/USD Daily Outlook, Mar 10, 2011

IgalSignalTrader

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Technical Overview:
As we predicted yesterday, the short term long at 1.385 with the target of 1.391-1.393 was just accurate. A nice move of between 50 and 60 pips.
This morning, toward the end of the Asian session, the pair broke the crucial support at 1.385. Therefore, we are now looking only for SHORT positions.
Looking at the Daily chart, EUR/USD short term downward momentum has accelerated and the immediate target is 1.378 – the lower band of the equidistant channel.
The second target is at 1.371. We believe that the break of the 1.385 is so significiant that this target is very much achievable in the short term.
10_03_2011_01.jpg

Trading Idea:
Best levels to enter SHORT positions are anywhere between 1.382 and 1.385.
First Target is at 1.378, second target is at 1.371.
A break above 1.388 will be a signal to exit short positions. Only a break above 1.394 will be a long signal.

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Couple of questions.

1. Do you have a view on long term EUR/GBP. I'm hoping for GBP to stengthen during 2011 and Euro to weaken. Got a keen eye on this as I'm considering buying a propety in Europe, and exchange rate is a big big factor.

2. Been reading about the impact of Spain on the Euro, and the Moody's downgrade (http://www.financespain.com/content/currencies). I personally see more downgrade coming for Spain during 2011. Anyone believe this to be the case ? Is that going to help my plans as above ?

Cheers, James
 
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