EUR/USD Signal Update March 16

Fadi Steitie

| on March 16, 2012 | Updated on March 16, 2012

By: Fadi Steitie

Currency: EUR/USD
Trend Expected Direction: Down within a falling channel.
Method: Elliott Waves and Fibonacci Trading.
Description: Trend just bounced at 1.618 Fibonacci level at price point 1.30 with a divergence in RSI. To follow up with yesterday trade, I would suggest you to close your long position to secure yesterday move and to get ready for next move. Now if price breaks the red falling channel at price 1.31200, then I would strongly suggest to add more lots to your trade and ride the wave toward wave (B) at 0.50 Fibonacci level of last falling ZigZag with a stop lose to be shifted to 1.30400. A confirmed divergence in RSI with 1.618 Fibonacci level confirm a bottom level. A break in RSI falling level warns of a bullish action might progress therefore lets watch for above 50 RSI to confirm the up move trend reaction.
Recommendation: Close and watch for another Long Position
Target Area: 1.31200
Stop Loss: 1.30400

Fadi Steitie

Fadi Steitie is an entrepreneur, investor and professional Forex trader who shares Forex signals with DailyForex.com based on his keen understanding of the market. His favorite pair is EUR/ USD because almost 40% of traders trade this pair and it does match most of his pattern recognition strategies. He is an expert in Elliot Wave principles as well as Ichimoku Kinko Hyu which he is currently researching. So far he has not seen many English translated books about this method of technical analysis, however he is continuing to read about it and believe this method has as much to give to traders like the Elliot Waves method does. Fadi is looking for the magic behind this principle even though many do not research this trading system.