EUR/USD Registers Bullish RSI Signal Against 13255
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: The sharp EURUSD selloff has resulted in a bullish RSI signal (basically the opposite of traditional divergence…RSI is getting ahead of price here). In uptrends, buying dips when RSI drops into the 50-40 zone is often a good move. An internal trendline is serving as support here and today’s CME volume was the largest one day volume since August 2, 2012 (also a Thursday coincidentally…the entire decline was retraced the next day).
FOREX Trading Strategy: I wrote yesterday that “I am bullish but near term weakness cannot be ruled out. If Tuesday’s low is broken, then I’m likely to get long again near 13350 (decline from 13711 would consist of 2 equal legs at 13342).” We got fairly close to 13350 Thursday. Longer term targets are above 14000 so I’m not splitting hairs on entries. I am bullish against, now against 13255.
LEVELS: 13255 13285 1334213458 1359713643
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