I think that EUR/USD Upward correction for the sharp descent 1.6039 - 1.3882 is not over yet now i favor the scenario of testing the neck line of the daily double top formation which confirmed trend reversal and was followed by the very sharp descent we saw last weeks and here is the confirmation on multiple time frames :
- On Weekly Chart:
Stochastic Oscillator : gives a clear buy signal after leaving the oversold area suggesting the beginning of medium term recovery
RSI : Still pointing Up after leaving over sold area
and other indicators suggesting the upside bias
- On Daily Chart :
Stochastic Oscillator has just entered the over- bought area still no clear signal of an over bought condition or clear sell signal i.e no clear sign of the end of the corrective phase
On 4 h Chart :
On 1 h Chart :
So i Suggest buying @ 1.4595 Stop loss @ 1.4535 Traget : 1st 1.4900 ( to be safe as 960 is major resistance and the volatility and trading ranges are high )
- On Weekly Chart:
Stochastic Oscillator : gives a clear buy signal after leaving the oversold area suggesting the beginning of medium term recovery
RSI : Still pointing Up after leaving over sold area
and other indicators suggesting the upside bias
http://img257.imageshack.us/img257/1259/55134923it8.gif
- On Daily Chart :
Stochastic Oscillator has just entered the over- bought area still no clear signal of an over bought condition or clear sell signal i.e no clear sign of the end of the corrective phase
http://img140.imageshack.us/img140/1033/18183467pc7.gif
On 4 h Chart :
http://img404.imageshack.us/img404/8258/4hnw3.gif
On 1 h Chart :
http://img140.imageshack.us/img140/4826/1hla1.gif
So i Suggest buying @ 1.4595 Stop loss @ 1.4535 Traget : 1st 1.4900 ( to be safe as 960 is major resistance and the volatility and trading ranges are high )