EURUSD OVERBOUGHT

Overbought levels appear to be causing the EUR/USD to stall out on the charts after the Memorial Day holiday in the States on Monday. On the daily the price action is just below 70 on the RSI and on the 4-hour it has just dipped below 70. Either way the pair has been pushing overbought all last week and is due for some consolidation so I will be looking to buy bounces off of support. Trading Idea: Nearest support is at 1.3895, however use extremely tight stops if you trade this level as a break below could spell much more significant drops. A more conservative support zone is around 1.3800 with targets at 1.3845, 1.3895 and 1.3935

EUR/USD UP AND GO

EUR/USD crashed through resistance yesterday and never looked back, busting upwards almost 150 pips at its peak. With the fresh higher higher and higher low we are again looking at a steady uptrend and buying opportunities. Hourlies are close to overbought territory - which is normal in a strong trend - but we will look for dips to buy as those levels cool off. Nearest support levels are at 1.3720 and 1.3665.

Trading Idea: Looking to buy a bounce off of 1.3720, tight stops, targets at 1.3775 and 1.3830.

EURUSD HIGH

EUR/USD is making a strong move for the bulls on all charts 1 hour and above, with the euro having gained roughly 700 pips in the past few weeks. Technically I am bullish on the pair in the mid-term but it is very overbought in the short-term. Pair cooled off a little bit yesterday as traders consolidated their positions overall but still has room to drop so I will be looking to buy on dips.

Trading Idea: A bounce off support near 1.3475 would provide a good opportunity to reset longs. Tight stops, targets at 1.3530, 1.3595 and 1.3645.

Strong EUR/USD Close Should Signal Euro Buying

If EUR/USD sustains its current momentum up, Jim McCormick of Citigroup says it's likely time to start buying euros. The ECB's move to quantitative easing "should be good for what has been a very good risk environment," he said, especially as measures of positioning show the market is thus far under-invested in risk trades. He sees no near term reason to sell emerging market and commodity currencies.

EURUSD

Euro bulls are in charge as the pair made a new higher high yesterday and higher low, signaling that the uptrend is still intact. Buying on a significant support off a bounce or buying a break of resistance will be my attack.

Trading Idea: Good support at 1.3250 and 1.3200 that I would buy a bounce off of. Long targets at 1.3295, 1.3240 and 1.3395. Tight stops.