During the Asian session, EUR/USD touched the lower band of the upward channel and bounced back toward 1.4075.
Although the short term downward momentum is still alive, we are very cautious with taking short positions.
The lower band of the channel, as well as the 1.403-1.404 support area, are inviting us to take a short term long positions, with a tight stop. However, we will wait for a pull back before entering such a position. Only a break below 1.401 will be a short signal for us.
Best levels to enter LONG positions are between 1.404 and 1.4055, with Stop loss at 1.4005.
SHORT positions should be taken only be breaking below 1.401, with a stop loss at 1.408. Target for such a break will be 1.386
Analysis by SignalTrader.com – the leading solution for Automated Trading. Autotrade on Forex, Indices and Commodities.
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