The $XEU chart below shows the Dollar-Euro exchange rate. I have added Fibonacci analysis starting from the high at the close of 2004 and the low in September of 2004. The Fibonacci retracement analysis suggests that $XEU will be testing 50% (at $1.284) retracement fairly soon. While the RSI (I used 9 periods here) is in oversold territory, is is less oversold at the present time than it was in early February.
An interesting chart pattern emerged as part of this analysis: note how the recent higher highs in February and March didn't see a bearish divergence in the RSI. Instead, the RSI showed a DOUBLE TOP, which is the moral equivalent of a reversal signal for the $XEU here.
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