The EURUSD failed to continue its bullish momentum yesterday, bottomed at 1.4122 and closed at 1.4136 but bounced higher earlier today in Asian session hit 1.4241. Another example of inconsistent momentum we have been seeing in the last two weeks. As you can see on my hourly chart below, price still trapped in the triangle area, still suggests a consolidation phase and a non trending market. In a trending market, a CCI below -100 level gives a sell signal and CCI above 100 level gives a buy signal. However, in a non trending market, CCI is useful to identify overbought and oversold condition just as you can see on my hourly chart below. From this point of view, now the CCI is moving up from the oversold area and crossed the -100 level to the upside, which could be buy signal. Basically I am a trend follower so the current trendless situation keeps me out of the market. The bias is neutral in nearest term. Immediate resistance is seen around 1.4250. A clear break above that area could change the intraday bias back to bullish testing 1.4300 – 1.4350 region. Immediate support is seen around 1.4150. A clear break below that area could trigger further bearish pressure testing the lower line of the triangle and 1.4100 – 1.4050 support area.
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