7-28-09
3:14a GMT – Pair continued to stay in its tight range yesterday. We saw a brief spike to just below 1.4300 yesterday but it was quickly tempered by a fast 100 pip drop. We do have a bearish divergence in the 4h RSI, but the slow stoch is nearing oversold levels as well, so the trade is not confirmed. I am looking for a little bit of a further drop to get the slow stoch to oversold levels, then a rise back up for a good alignment of slow stoch and RSI at overbought levels, while price action is near resistance on 4 hour charts for a sell opportunity.
Trading Idea: Looking for slow stoch to return to overbought levels just as RSI touches yellow resistance and price hits resistance near 1.4275. Short targets at 1.4215, 1.4170 and 1.4130. Would consider buying on a dip to oversold on the slow stoch if price is near support as well, in the short-term.
(click to enlarge)
Click here to receive my free forex signals via email
Click here for more info on how to use my free forex signals
Click here to learn how much you can earn with our Forex Income Calculator
Discuss this signal with me and fellow traders at the new Forex Discussion Groups
Recent Comments