December 18, 2008 05:29

Forex Signal – EUR/USD Still Buying Dips

By:

12-18-08

5:24a GMT – The fed made the expected move of again lowering the lending rate, however they made it quicker than some analysts expected and made a more aggressive cut (.75%) than many expected. The dollar was soft to begin with and this latest news pushed it even lower as the EUR/USD hit a monthly high of 1.4450. All of this means that the uptrend is still very much intact, however as with the previous signals the pair is currenty overbought so I am looking for dips to buy on near support.

Trading Idea: nearest support is around 1.4125 (next closeset is 1.4005) and I will be looking for bullish reversal signs around this area. If I see none I will wait for support at 1.4005. Long targets are favored for another challenge of 1.4310 and then 1.4450.

(click to enlarge)
 

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