6.09.2012 EURUSD poised for another correction

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• Блог им. mizerinvest  

EURUSD


The EURUSD has rallied from its last correction and set a slightly higher high which caused this pair to form a rising wedge formation as shown on this H1 chart. The price action started to consolidate at the top and is poised for another correction which will lead to a break-down of the formation. The added risk is the U.S. employment report tomorrow so caution is warranted.

MACD remained stagnant during the rally and has not confirmed the new high. RSI has reached overbought territory and has traded in and out of extreme overbought and overbought condition which is another sign of upcoming weakness.

I recommend taking an initial short position with lower volume at 1.2630 and wait for the release of the U.S. (un)employment report tomorrow which could lead to a temporary spike in the Euro which would create a good point to add to the shorts around 1.2700. Place your take profit level below 1.2550 or ride it below 1.2500 if you have a longer time horizon.

• eur-usd

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• 6 сентября 2012, 16:44
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