If someone put a gun to my head and made me trade for my life tonight....
I would say continued dollar weakness and then a reversal Friday.
Seriously though, I really don't see good entries currently. Everything is "overbought"....whatever that REALLY means. Honestly, most traders don't realize that oscillators (which RSI is and is the most abused indicator) are "normalized". Basically, that means the equation that calculates this value keeps climbing infinitely but the magnitude it increases drops dramatically at higher levels.
Analogy:
A man moves 1/2 the distance towards a wall every time price increases 10 pips. 10ft turns into 5ft into 2.5ft into 1.25ft etc...
After 500 pips the distance is in centimeters. Will the man ever hit the wall though? No he won't EVER.
This extreme is very important in current market conditions. When extreme variables are introduced into a market. (strongly strongly trending) "Overbought" is the most dangerous word a trader can utter.
I would say continued dollar weakness and then a reversal Friday.
Seriously though, I really don't see good entries currently. Everything is "overbought"....whatever that REALLY means. Honestly, most traders don't realize that oscillators (which RSI is and is the most abused indicator) are "normalized". Basically, that means the equation that calculates this value keeps climbing infinitely but the magnitude it increases drops dramatically at higher levels.
Analogy:
A man moves 1/2 the distance towards a wall every time price increases 10 pips. 10ft turns into 5ft into 2.5ft into 1.25ft etc...
After 500 pips the distance is in centimeters. Will the man ever hit the wall though? No he won't EVER.
This extreme is very important in current market conditions. When extreme variables are introduced into a market. (strongly strongly trending) "Overbought" is the most dangerous word a trader can utter.
"Timing Is Everything. Really I Swear It Is"