October 28, 2008 04:03

Technical Analysis – EUR/USD Approaching Support; Time to Buy?

By:

10-28-08

2:58a GMT – Is it time to start buying the EUR/USD pair? It may be as the pair has just bounced off support around 1.2300, the weekly RSI is well below 30 and the Slow Stochastics on the weekly chart are trying to cross. The US stock market dips Monday and last week have pushed the USD higher, and good news yesterday about new home sales may push some of that money back into the stock market and provide the bounce we are looking for in the EUR/USD.

Trading Idea: Look for bearish reversal signals around 1.2300, with long targets favored to 1.2395, 1.2455 and 1.2695.

(click to enlarge)

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