Sunday, April 08, 2007

The Week Ahead

Salam,
Next week, euro may test 1.3480 (2005 high), BUT price needs to close strongly above 1.3420 for bullish momentum to resume. After a big move such as what we saw on Friday, price usually will stabilize up and down before continuing its prior direction or reversing its course. It's good for several good pips, and always review your setups and makeups before entering the market.
My strategy for next week;
Buy when 15-M MACD shows bullish divergence and EMA 365 is flat or descending, and MACD bar has to be in negative territory.
Support 1.3350, 1.3320, 1.3280
Resistance 1.3385, 1.3420, 1.3455

The 4-H MACD is now showing a bearish divergence (I think has been that way for two weeks), raising the chance of a short-term reversal.

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