Good day Forex Traders.

Lets look at the chart below.

euro dollar 4 hour chart analysis on 22nd September 2010

euro dollar 4 hour chart analysis on 22nd September 2010

Looking at the charts we can see that eur/usd have bashed through resistance level 1.3337. So, is the pair going to head higher or will there be a correction to take the pair lower? I think that the higher probability trade at the moment is to short the pair. Indicators such as the MACD and Stochastic indicate that the pair is quite overbought. I expect the pair to retest the last resistance at 1.3337. If that breaks lower, we can see the pair heading back to 1.33 levels.

I will be monitoring this pair as the FOMC decisions yesterday have really caused this pair to spike upwards. I am looking to take a quick short position once I get the confirmation signals from my system.

~ Ardy

Singapore Trader’s Forex Blog