Eur/usd - Trading Strategy, Trigger Points, and Support and Resistance Levels

Eur/usd - Trading Strategy, Trigger Points, and Support and Resistance Levels


RBS has given the following trading strategy, trigger points, and support and resistance levels:
TRADING STRATEGY(from 28th of June): Medium term shorts to 1.2290 onto 1.1881 which is the 2008 low stop through 1.2775 (above the recent highs)
TRIGGER POINTS:
1.2329 - The level to be aware of if the 1.2632 level is broken as it was the 2008 low (October)
1.2670 -38.2% retracement from the May/June range
1.2290 - 2012 low (so far)
1.2628 - Previous January low and resistance on the 7th June
SUPPORT LEVELS: 1.2446, 1.2425/50, 1.2290, 1.2055
RESISTANCE LEVELS: 1.2525, 1.2628/70, 1.2787
-Despite the overnight moves my (analyst) bias doesn't change in the short term here, it only emphasises the need for wider stops to allow for the market to swing in line with news headlines.
-EURUSD chart back in December '09 had formed an almost perfect bearish flag pattern around the 1.44 level and once it had been broken quickly accelerated lower to around the 1.36 level. This is almost a carbon copy of what is happening here in the chart now. A bearish flag pattern is in the process of breaking lower with the overall objective lying around the 1.18 level with the only noticeable level of support before then at the previous annual low around 1.2290. Risk/return still just about works here with stops above the previous highs around 1.2775. Intraday and in the much shorter term the 1.2525 level is starting to become resistance.

More FOREX-news on pages InstaForex.Com