Tuesday, August 26, 2008

EUR USD 27th RSI Positive Divergence

There is a positive divergence appeared in the EUR USD graph.The graph is posted here.The price is gone down but the RSI(14) is is gone up indicationg a positive divergence.This positive divergence is occured in the oversold area.The selling is reduced.This is an indication for liquidating the short positions in the market.However based on the divergence alone entering the long position is dangerous.Wait for other confirmation of further USD weakness before entering long positions.Murlaeedharan http://forexcentral.googlepages.com