FX.co ★ EUR/USD Daily Forecast For April 08 / 2011

DAILY FORECAST :

Since the pair broke the 3-days high at 1.4351 in the early morning, the EUR/USD got a strong bullish momentum, especially after yesterday the ECB raised their rate to 1.25%. However, in daily charts we can spot a Divergence between the charts and the MACD Histogram; therefore please beware of the retracement, especially if the mark 1.4400 acts as a strong Resistance for the EUR/USD today. However if the mark 1.4400 can easily broken by the EUR/USD, there is a chance the pair will test the next Resistance at 1.4440 (Fibonacci Expansion 1.00) as the first target and the 1.4551 Resistance level (Fibonacci Resistance 1.618% of the Fibonacci Retrachemant) as the second target. On the other hand, if the pair can break out and close below 1.4375, the EUR/USD will test again the 3-days high at the 1.4351 as the first target, and if this level can be easily broken by this pair again, the 1.4333 will be the next target (second target) for today.