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TECHNICAL ANALYSIS EUR/USD 04/16/14

1 Hour Intraday Trading

As we already mentioned in our last analysis few days earlier, we are in a period of a battle between Short & Long holders or if you like between EUR and USD. If we take into consideration the big picture looking at the daily chart we can see clearly that we are in an uptrend since the 8^th of November, something that is not so clear in the 1 Hour Chart because we have higher tops but lower bottoms too

If the price manages to break the R2 resistance level and cover the gap of 44 pips during the last weekend then most probably we will see the price climbing to R3 level a possible break above the R3 will alert an upward move with prices likely reaching and testing the 1.3960 which is the years’ Highest Rate.

On the other hand this is the time where Short Holders should take action. The price opened with a strong gap over the weekend in favor of the Short Holders and have managed not only to keep this advantage so far but to drop the rate to lower levels.

Momentum is still with them as MACD just crossed the 0 line and Stochastic  penetrated the 80 level from the overbought area.

INDICATOR ANALYSIS GBP/USD

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