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The major pairs are all over bought against the dollar right now, with the exception of the yen (Usd/Jpy). As such we will be looking to buy the pull-backs rather than trying to buy the break-outs from these areas. The momentum indicators moving through overbought areas offers institutions a signal to hold existing positions looking for further appreciation, but not to add to positions at this time.
The break lower on the 4 hour time-frame from the RSI 70% overbought areas on Eur/Usd, Gbp/Usd, and Aud/Usd, and higher from the 30% oversold on Usd/Chf and Usd/Cad, will be the most reliable to monitor TheLFB Trade Team said. They will then lead to a pull-back on the daily charts from the same 70% and 30% areas. We will then look to a 1 hour chart signal that hits a Stochastic 20% oversold support read on Eur/Usd, Gbp/Usd, and Aud/Usd, and hits an 80% overbought resistance read on Usd/Chf and Usd/Cad.
At that time we will look to the Trade Plans for near-term price points to work our entries from, with the critical link being to ensure that the fundamental forex valuation driver, global equity (stock) markets, are moving higher at that time. We should only look to buy the majors on the days that stocks move higher, and only after a pull-back.
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