10.04.201407:09 Forex Analysis & Reviews: Technical analysis of EUR/USD for April 10, 2014

The Federal Reserve officials worried about inflation and the signals they were sending about interest rates at their two day policy meeting March 18-19. Some officials argued they needed to send a stronger signal that they wanted to see inflation moving up toward the Fed’s 2% objective. Some also worried that their interest rate projections might be incorrectly viewed leading toward a more restrictive policy.

Technical view-

Positional view-

EUR/USD is doing what the cable is doing. The EUR/USD is trading at 1.3856 in Asia's trading session. It is continuing its bullish move towards new highs. The pair is facing resistance at 1.396-1.40 levels. Once the pair closes above the 1.396-1.40 levels, it will travel up to 1.44 levels in the next couple of months. On the down side, the pair has minor support at 1.37918 and 1.37718 and the strong support exists at 1.3748; below this, 1.3643 levels. RSI in the daily charts is still favoring the up move. Before making a new high, we expect the pair to correct a bit up to 1.3750 levels.

Recommendations-

Buy above 1.40 or wait for a dip to enter fresh longs.

Intraday- limited upside and set for a correction

In the H4 chart, the pair is facing resistance at 1.3876 levels. It looks tired to make a fresh level. The momentum indicators are giving an overbought indication resulting in limited upside and open gates for a correction. On the up side, the pair has resistance levels at 1.3876. Above this, it can go up to 1.1.3924 and 1.3950 levels. We expect before moving to 1.3950 levels, the pair will take a back seat and set for a correction. Safe traders can enter shorts at higher levels for targets at 1.3820 and 1.37725 levels. The pair will be in bear hands once it trades below the 1.3780 level, it will drift up to 1.377 and 1.3756 levels. This view is valid up to Monday. Once the pair breaks below the 1.3764 level, it will panic up to 1.3741 and 1.3673 levels.

Recommendations-

Safe traders, buy above 1.3876 for 1.39, 1.3924, and 1.3945.