Well it looks like patience might pay off after I delayed the signal until the start of New York session. I was waiting for some signs as to direction of the pair after the Labor Day weekend in the States and direction is what I got. Extreme volatility in the pair made it jump up almost 200 pips as it made fresh 2009 highs peaking just about 1.4500. Interesting to note that the US stock markets did not share in the extreme rally (though I think US stocks are overpriced already) which has been the pattern of late with risk aversion being the main theme. With gold flirting with 1000 and oil up to 70 USD/barrel this could be the beginning of a serious inflation problem for the greenback. With the new higher high in place I will look to buy dips near support though with the pair so overbought I would also look to sell another pierce upward.r
Trading Idea: Nearest support is at 1.4400 and then 1.4365. I will look to set longs on a bounce off of these support areas with targets at 1.4455, 1.4495 and 1.4525. With the RSI heavily overbought (was at almost 90 for hourlies) I would also look to sell another run into resistance between 1.4520-1.4550, with short targets back down to 1.4425.