Monday, February 1, 2010

EUR/USD most likely to fall further...

This based on pure technical analysis. I switch over to technical trading if there are no 'major' news events on the horizon. I'm going to enter a short very soon on this pair (the EUR/USD) against most of my fellow traders. The majority entered a long position here (over 53% went long on this trade according to the SSI). Reasoning behind this trade is the following graph;

[caption id="attachment_327" align="alignnone" width="590" caption="Courtesy of Daily FX chart"]DailyFX Chart for 02012010[/caption]As you can see the RSI is heavily oversold, and the 'trend is your friend' analogy is kicking in here. Going to find a good entry point to sell this pair short.

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