January 26, 2009 03:57

Forex Signal – EUR/USD Mixed Signals; Selling Rallies

By:

1-26-09

3:56a GMT – Welcome back! I hope everyone had a good weekend. Back to Forex! Overall I am still seeing bearish signals on the charts but a few things are making me nervous. First, the dailies are almost oversold (currently around 38 on the RSI) and in need of some greater correction. Second, we saw a textbook bullish doji on 4-hour charts at the end of last week (circled in blue below).

However, lower lows and lower highs continue to be made, meaning the dominant trend is to the downside and that is where I am looking to trade. I will look for rallies to sell on around resistance areas, and use tight stops in case the bulls win out.

Trading Idea: I am looking to sell around 1.3020, with shorts preferred down to 1.2870 and 1.2805 for a quick 200 pips or so. Catch it on the way down and use tight stops.

(click to enlarge)
 

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4 Comments on "Forex Signal – EUR/USD Mixed Signals; Selling Rallies"
  1. Reply
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    Comment left on:
    January 26, 2009 at 04:53
    Ron says:

    What is your diffention of tight stops? Some people use 30, is that what you would consider tight or 50?

  2. Avatar of piphut
    Reply
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    Comment left on:
    January 26, 2009 at 04:57
    piphut says:

    I prefer 30 on the EUR/USD. I’ll probably try and catch it at 1.3025 on the way down to give myself an extra 5 pips as well.

  3. Reply
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    Comment left on:
    January 26, 2009 at 05:42
    chris says:

    But currently it is only at 1.2930. So we have to watch and wait until it reaches 1.3020 then sell ?

    Thank you

  4. Reply
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    Comment left on:
    January 26, 2009 at 09:08
    Dave says:

    Thanks,Mark..the price of Gold is getting higher recently….and leave your comment on the relations of those 2 ..

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