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Saturday, April 2, 2011

Trend for 2nd of April 2011

Today I want to write a few thoughts on my expectations for eur/usd pair. The pair has been in a slow trend up since the 10th of January of the year. Eur/usd closed near the important resistance level on Friday. As you may understand we can expect either a reversal at the point or a breakout upwards and a continuation of the uptrend. The pair has been in a pretty narrow range for about two weeks (since 22nd of March). The upper part of the range is 1.4250, the lower part of the range is 1.4020. 

There is a general rule that Mondays are reversal days, especially if you have a large move on Friday. However, we have the beginning of a month and a fresh move up can also be in store for us as well. So, I am in two minds about the pair. If I see a reversal pattern I might take a reversal trade down in the pair during European session on Monday. If there is a breakout up, I will wait for some sort of reversal down and then I will place a buy stop order above the most recent high if it is going to be formed (if the break happens). See you tomorrow.

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