Sunday, 17 April 2011
Further decline of EUR/USD in the coming days.
Our forecasted resistance at 1.4485 have been tested numerous times and although the price closed above it did not manage to sustain beyond this level. The break of lower trend line on the 4 hour chart supports our view of price decline. Daily stochastic was in overbought zone for the last 10 days and it dropped below the 80 level which further suggests a price decline. As price moved slightly above our previously forecasted level I will adjust Fibonacci retracement levels to account for the changes. Consequently our first target is 1.4261. By projecting Fibonacci retracement tool from 1.4519 and placing 61.8% on the next support which was created in the last few days we also get 1.4261 resistances consequently further reinforcing our view that 1.4261 will be the key level. If this level will be broken and the price will be able to sustain below it, there is a strong possibility for the bearish trend to develop.