The Williams Percent Range on the weekly chart has crossed over into overbought territory, signaling that a downward correction could occur in the near future. This theory is supported by the MACD/OsMA on the daily chart, which appears close to forming a bearish cross. Opening short positions may be best choice for this pair.
EUR/USD: 1.35, or 1.25?
For the past 2 months, and after bottoming at 1.2660, the EUR/USD has seen an increasing upside momentum that took the pair to a 1.3307 high past week. Retracement from such high was contained by the 38.2% retracement of the latest bullish leg, and the pair aims back higher standing now above 1.3200. So, what are the chances the pair may continue higher, and what the chances of a top in place and further falls from now on? Much of the answer will depend on the result of the US fiscal cliff negotiations this week. The country needs to reduce deficit, and needs huge tax increases or fiscal cuts, to reach its target. A ... (full story)