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in Daily Signal - 19 Aug, 2011
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#EURUSD for Friday
EURUSD - Aug-19 0325 AM (1 hour)

EURUSD - Aug-19 0325 AM (1 hour)

Time for caution here . Its also Friday which can sometimes be a real pain for trading as you can sometimes get stuck in trades over the weekend.

So looking at the chart we can right now see the price respecting the bottom trendline B . So some might say why not take a long position . Well ok , stops will have to be under 1.42 for this not nice going into the weekend if it goes the wrong way . We also have a sloping shorter term trendline at C  which could provide resistance to any upward movement . However there  is a triangle forming and that generally means a breakout at some point.  So if a long position is coming then it has to be on a break of 1.4350 that being a sustained break so price breaks the 1.4350 and then attempts a push back below it which fails. Then we could see the sloping trendline  C turning into a support level.

For short positions look 1.44 – 1.4450 which is going to be 50 – 61.8 retracement level of the move down we have just had. Look for candlestick alerts for the short side entry.