Tuesday, July 28, 2009


Pair continued to stay in its tight range yesterday. We saw a brief spike to just below 1.4300 yesterday but it was quickly tempered by a fast 100 pip drop. We do have a bearish divergence in the 4h RSI, but the slow stoch is nearing oversold levels as well, so the trade is not confirmed. I am looking for a little bit of a further drop to get the slow stoch to oversold levels, then a rise back up for a good alignment of slow stoch and RSI at overbought levels, while price action is near resistance on 4 hour charts for a sell opportunity.

Trading Idea: Looking for slow stoch to return to overbought levels just as RSI touches yellow resistance and price hits resistance near 1.4275. Short targets at 1.4215, 1.4170 and 1.4130. Would consider buying on a dip to oversold on the slow stoch if price is near support as well, in the short-term.

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