Monday 11 March 2013

EUR/USD - Big Long move on Horizon

Please click on the chart to enlarge it


Hi Every one

It seems that Euro's is like a sport car with breaks on but engine revs are increasing, as the SMART MONEY let off the breaks it will shoot up like lightening, until then it will consolidates (if not long).

RSI 6 is showing strong divergence not just on Euro (top chart) but on Dollar Index as well (bottom chart), MACD & Stochastic are diverging too. Although fundamental bias is bearish as NFP came with positive figures of 236,000 (jobs added) well above the forecast 160,000 which paused any potential trend reversal technicals are pointing. The only thing stopping me to go in this trade is that there is no FIB Extension, apart from that other three are present.

1. Strong Horizontal level (1.2970 & 1.3000 are making a buying zone)
2. Inside Bar (it look it will be an inside bar by 2200 GMT.
3. RSI Divergence

SAJ