FX.co ★ EUR/USD Technical Analysis. Support And Resistance Levels For March 18/2011

TODAY TECHNICAL LEVEL :

Breakout Buy level : 1.4103.
Strong Resistance : 1.4094.
Original Resistance : 1.4081.
Inner Sell Area : 1.4067.
Target Inner Area : 1.4034.
Inner Buy Area : 1.4000.
Original Support : 1.3987.
Strong Support : 1.3973.
Breakout Sell level : 1.3965.

TODAY OUTLOOK :

The 1.4000 level has been providing a good support level since yesterday, this level was tested twice by the pair since yesterday. Based on this condition the pair went up to test the 1.4075 level. The Bias of this pair is still in an uptrend situation. This is indicated by the EUR/USD daily charts. Yesterday the pair formed a "Bullish Engulfing Pattern" on the daily charts, which, as we know, is a signal of reversal to the upside, especially if this pattern appears at such significant level as support/ resistance or round number. Yesterday this pattern started to form after the pair hit the 1.3900 level (round number), and at the intraday charts (m30) a "Double Bottom Pattern" was formed at the 1.3875 level.

TODAY SUGGESTION :

BUY if the EUR/USD can break out and close above 1.4080, set Take profit at 1.4100 as the first target and 1.4125 as the second target.

SELL if the EUR/USD can break out and close below 1.4050, set Take profit at 1.4025 as the first target and 1.4000 as the second target.