02/05/10 9:50 am - EURUSD: triple bullish divergence on hourlies

1.3745 gave way and the pair is now breaking below the 1.3650 range, which was the measured target (Fibo extension) of the move that started at 1.510 in early Decmber last year. Price is currently at 1.3615 but hourly RSI shows a strong triple bullish divergence, a sign that a sizable bounce may be in store soon. I may be looking for a short term long-trade if there is confirmation of that bounce starting, at the moment I’m not in the mood to catch a falling knife. There is trendline support coming in on the daily chart at around 1.3540, not sure if that will be reached today. Daily RSI is oversold. Sidelined until the end of trading for sure.

Support: 1.3575 SpptRsst   1.3540 ChannelTLSppt   1.3422 L-5-18

Resistance: 1.3850 HSpptRsst   1.4025 HSpptRsst   1.4190 HSpptRsst

RSI: Hrly: 3x bullish div., Dly: bearish, capped by decl. TL, o/s

Hourly Chart:

EURUSD Hourlies 2-5-10

Daily Chart:

EURUSD Dailies 2-5-10

February 5, 2010 · Filed under EUR/USD

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