Wednesday, 30 March 2016

In the overbought territory - EUR/USD

The price has pierced the Bollinger band, as shown in the chart  on a 4 hour time frame and this confirms that the volatility is high. The piercing of the Bollinger band does has a significant importance  as an opportunity to buy or sell. The significance of the piercing of the Bollinger band is even higher  because  this takes place at an important level of support or resistance. Under the circumstances we are still a little away from the minor resistance zone.
The EUR/USD pair is trading above its upward trend line. This confirms that the trend is skewed towards the upside and as long as we remain above this trend line, the bias may remain for further upside move.
The reading for the Bollinger the upper and lower bands are 1.1201 and 1.1069 respectively.

The RSI is trading at 75 which is in the overbought territory and this may push the price lower or trigger a pause for the price action.


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