Friday, July 10, 2009

Forex Fridays

There are two important points to make about the weekly chart. First, the MACD and RSI are signaling a lower move ahead. This jibes with the price pattern which says prices are consolidating in a triangle pattern before a move lower (based on the indicators).

The daily chart confirms that we have a high probability of moving lower. First we see the price consolidation in more detail. Secondly notice the full stochastic is giving an over-bought reading. Stochastics/oscillators are better to use when prices are in a range which they clearly are.