12/16/08 11:48 am - EURUSD: Is the market buying the rumour?

EURUSD broke 1.3750 and is hovering near 1.38 an hour before the Fed announces the new rate. Looks like a case of “buying the rumor selling the news” at this point. Overbought dailies and triple divergence on the hourly RSI are calling for a downturn soon. I wouldn’t be surprised to see another brief exhaustion spike upwards after the rate announcement, maybe to the upper channel line at 1.3950, followed by a drop back below 1.37, which should extend towards 1.3415 over the next few days. Not going long at this point, waiting to buy a dip.

Hourly Chart:

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