mardi 5 juin 2012

Bearish Divergence spotted on the EUR/USD 4H Chart (6/5/12)

EUR/USD 4 Hour Chart , 08:24PM EDT 6/5/12

 
Friday and today, EUR/USD made a rally which is a short-term countertrend of the strong downtrend of the Chart which took place in May.
However we spotted a Bearish Divergence signal on the 4h Chart (price made lower high while stochastic made higher high). Is it an opportunity to sell the rally? Fundamentally we know that the Eurozone is in a pretty bad shape and even if the US economic is not sleek too, the Euro have more troubles since Greece is maybe at the brink of a single currency exit.
My idea: sell on the daily first resistance at 1.2545, stop at 1.2585.
Note that it will be important to wait for a formation of a good candlestick signal before enter in the trade.

Good Trading!

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