Friday, October 16, 2009
EUR/USD Position Worth Watching
A look at the daily EUR/USD chart shows a possible top starting to form. Notice on the daily chart above that the RSI is at a level that has previously market major tops (see blue arrows on chart) which is combined with an RSI divergence forming if today's decline holds. Now this behavior can remain for a while as prices work higher, but it's a sign of the end of a trend, not the beginning.
I'm watching the euro closely because as I've said before, when the EUR/USD tops so will the stock market.