EURUSD is moving in a nice upward trend and after touching top of its current channel around 1.4250 level, it seems to be taking some retrace. The retracement seems to extend towards 1.4000 level. The 1.4000 level seems a very good buying entry especially for long term trader. The first target for traders will be around 1.4200 level and in case EURUSD managed to get enough momentum to break 1.4200 level, the next target will be around 1.4300 level.

On the lower side, break below 1.4000 level open up 1.3900 level as next target which also is a strong weekly support and in case EURUSD manages to break below 1.3900 level, the reversal of trend will be indicated.

At the moment the traders will look to focus more on 1.4000 level, as the 22 Moving Average line is also approaching that level and some good buying indications are there. The RSI value is below 60 and will open up further as EURUSD will complete its retracement towards 1.4000 level. The RSI will support the upward movement of EURUSD from 1.4000 level. Also considering the retracement of 1.3750 to 1.4250 leg, 1.4000 level is also very important level.

Summarizing the situation, buying EURUSD at 1.4000 for 1.4200 level is the currently indicated trade levels.

Yesterday I posted an outlook on the Eur/Usd, today I want to go a bit more in depth with the pair by looking at the daily charts.

The first thing I noticed when looking long term is the Fibonacci retracement level all the way from the beginning of this up move back when the price was 1.2464 that the .382 level is around 1.4119 area.  We are getting near that level now so that could be a major area of support that the Dollar must contend with for this bullish move.

Daily Chart  *note click on the chart to learn about our premium trading service.

Next I am going to zoom in to the daily chart and look at this particular move to the downside. First I have drawn in the support level at 1.41783 so we have that to contend with, in addition to the Fibonacci support level I wrote about earlier. Next look at the red bars in this current down move from the 1.5100 levels, there are seven red bars and 3 green bars. There are 4 red bars in a row which means for days of strong selling. At the end of this move on Friday the pair cracked 1.4300 and headed lower but then stopped and bounced back up. As a result a doji was formed and that indicates indecision.

There is a great amount of pressure against this current bullish Dollar move. I am not saying this move is over, rather I am saying that there is great deal of support to deal with and in order to find sellers of this pair there must be an incredible amount of positive dollar news.  My advice to traders is if you have made profits selling this pair be ready for a turn at any time, do not let your profits get away from you. In addition be cautious if attempting to jump on the shorting band wagon at this point, that could be dangerous.

There is a trading system called the Koala system that has been posted by the Geek Knows ask him for advice on how to trade his free system.