Friday, July 24, 2009

Eurusd Heavy Selling

It doesn’t get much more picture perfect then yesterday’s signal - the pair gave us long upward wick followed by a bearish engulfing candlestick - two major reversal signs. If that wasn’t enough we had a bearish divergence on both the RSI and Slow Stoch. All targets were hit within 4 hours. But that was yesterday. On to today! After the major rally in the USD we saw the pair bounce off of oversold on the RSI, just touching 30 before rallying back up. I will continue to be bearish on the pair and look for selling opps near resistance.

Trading Idea: Resistance at 1.4165 and 1.4200 is the closest. As the candlesticks have been good signals so far I will look for a candlestick confirmation signal, and also divergences in the RSI and Slow Stock on 60m. Targets back down to 1.4165, 1.4115, 1.4085 and 1.4055.

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