June 1, 2009 05:09

Forex Signal – EUR/USD Buying Support; Bulls Losing?

By:

6-1-09

5:36a GMT – It was a busy week for me last week and only a few signals got sent out as a result! First off PipHut got taken offline for a day due to a technical problem, I’m going to be moving across the country and yesterday I got attacked by ants as I was washing my car – hopefully this week is better!

On the charts last week we saw the bulls push upwards relentlessly as dollar hawks were left wondering what went wrong. As those of you who follow PipHut know I generally trade trends and the trend for the EUR/USD is definitely upwards in the short and mid-term right now. My major concern with the trend is the overbought levels. Here are the RSI readings for various timeframes right now: 60min  66; 4-hour 67; Daily 69; Weekly – 60. What concerns me the most is the longer-term overbought levels. The last several times we saw those readings on the daily and weekly (not to mention the monthly) we’ve seen some pretty steep drops. So far the Euro bulls have managed to hold steady but some cooling off is bound to happen – the question is will it happen now or after another major bull run?

Trading Idea: Sticking with the trend in the short-term and will look to buy a bounce near support at 1.4050 or 1.4000. Tight stops given above concerns. I would also consider buying a break above 1.4175 for a quick 50 pips or so.

(click to enlarge)
eu6109buying

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2 Comments on "Forex Signal – EUR/USD Buying Support; Bulls Losing?"
  1. Reply
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    Comment left on:
    June 1, 2009 at 07:36
    Blake says:

    I also want to bring to attention anyone reading this comment it is at the 50% fib from it’s alltime high in the 1.6040 high to the recent low in the last few months

  2. Avatar of piphut
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    Comment left on:
    June 1, 2009 at 15:32
    piphut says:

    Good call Blake. Love those longer-term signals as they are usually most reliable.

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