May 26, 2009 05:30

Forex Signal – EUR/USD Caution; Buying Bounces

By:

5-26-09

6:26a GMT – Overbought levels appear to be causing the EUR/USD to stall out on the charts after the Memorial Day holiday in the States on Monday. On the daily the price action is just below 70 on the RSI and on the 4-hour it has just dipped below 70. Either way the pair has been pushing overbought all last week and is due for some consolidation so I will be looking to buy bounces off of support.

Trading Idea:  Nearest support is at 1.3895, however use extremely tight stops if you trade this level as a break below could spell much more significant drops. A more conservative support zone is around 1.3800 with targets at 1.3845, 1.3895 and 1.3935.

(click to enlarge)
eu526mixed

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