EURUSD S/R and Overbougt Divergent

EURUSD Overbt_DIV 15DEC08  (click to see chart) The EURUSD retracement is strongly overbought but the move may not be quite done.  As I write this, I am watching for a break above 1.3723 in which case I will go long with an initial target of either 1.3796 or 1.3881 depending on where the breakout candle closes.  During active sessions I will take a break on the 15 min but in slower sessions I prefer using the 1 hour timeframe.  Also I am watching for a retracement back to the 62 currently at 1.3455 or further if we come out of overbought.  There is a clear divergent setup on the MACD and the Stochastic is in overbought territory.  This has been a clear breakout in hindsite but was a bit tricky as I was watching for a pullback too early around the 1.3256 area.

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