General overview for 30-04-2015 07:50 CET
Despite the general bad news from the US, the US dollar has started to show some signs of a rebound that is possible in the near term. The first clue of a possible reversal coming is important support in form of Fibonacci cluster between the levels of 1.1986 (July 2014 low) and 1.2023 (July 2011 low). The second clue came from a clear and simple bullish divergence between the price and momentum oscillator. The third clue that supports the view of a possible reversal is a completed WXY corrective pattern in wave 4 green, which means there should be one more wave to the upside made to complete the higher degree structures. The first hurdle to overcome is the golden trend line dynamic resistance and the technical resistance at the level of 1.2087, so any break out above this zone will be considered bullish.
Support/Resistance:
1.1944 - Local Low
1.1986 - 38%Fibo
1.2023 - 23%Fibo
1.2086 - Technical Resistance
Trading recommendations:
Daytraders and swingtraders should consider to open buy orders from current price levels or wait for a break out above the level of 1.2086 as a confirmation of a valid buy setup. Rather tight SL should be used here (20-30 pips) and TP is open for now.
