EUR-USD

Downtrend hasn’t officially ended yet. Still got bearish dominance on weekly charts, and no immediate trend change signals on daily charts, although Stochastic and RSI entered oversold zone.

Trading signals:
Bias: bearish
Preferred position: staying out
For those who are Short, S/L is above 1.4470

GBP-USD

The pair is extremely oversold. A minor correction upwards can be expected. No clear signals of a change of the main trend yet. A first possible reversal signal is noted on 4H charts, where MACD shows divergence between price and indicator histogram.

Trading signals:
Bias: bearish
Preferred position: staying out.
For those who hold Short positions – tight S/L around 1.7790

AUD-USD
With this pair we have an interesting setup to try aggressive entry.
Weekly charts – price meets 200 SMA, RSI is oversold and Stochastic crosses in oversold zone.
On daily charts we have a spinning top – and invitation for a reversal. Daily Stochastic is exiting oversold zone, RSI is also exiting oversold zone.

Aggressive position: Buy as soon as new trading week starts.
Set S/L below 0.8020. Initial profit target – 0.8350.

Truly yours,
Practical Trader

This entry was posted on Sunday, September 7th, 2008 at 5:15 pm and is filed under Weekly market comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.