Wednesday, April 1, 2009

Contrarian case for the EUR/USD

After further study...I think it's worth noting the following two charts Euro/Greeny and the Greenback spot, which show off one of my favorite indicators, Bollinger Bands...

It's usually at the middle line that you will see a 'decision' made...either it continues towards the opposite line it came from OR it reverses. (Clicking on the charts give you clearer views):



Notice where the last bar ends up on both charts.

So we are at a definite turning point for both. Both RSI lines are at 50%...so just be careful. The trend is down for this pair...but it will be interesting to note what equities will do tomorrow. I showed the double trendlines on the longer term chart...and here is a decent trendline going back to Tuesday morning:

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