December 16, 2008 05:34

Forex Signal – EUR/USD Overbought yet?

Posted In: Technical Analysis
By:

12-16-08

5:26a GMT – The answer is yes and no. The pair is overbought and in need of some correction – but I would start selling any time soon. Trend is obviously up right now and while I think we will see a dip to ease off overbought levels as traders take some profits I don’t want to be caught on the wrong end of this rise. I am sticking with the strategy of buying dips as we have been on the right side of a 1000 pip rise so far.

Trading Idea: look for a dip to ease overbought levels and then look for bullish reversal signals around support, currently at 1.3640  and 1.3535. Longs favored for another test of 1.3765.

(click to enlarge)

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