Yesterday's D1 close above 1.3000 pysch round number key level. Im considering the possibility that it is a false break. To confirm the false break, today's D1 must close below 1.3000. H4 shows bearish pin bar with RSI divergence.
Hey Price, ya I was also looking at that 4 hr pin bar. We did get a daily close above the 1.3000 round number. But the monthly top is 1.30632, as pointed out earlier by Ivan. This is a tricky situation, it did gave us a daily close above the psychology round number but it hasn't reached the monthly high yet. What do say mate :)
I say sell if it closes below 1.30 on H4 minimum. The close above 1.3 is not backed by any fundamentals or technical findings. The RSI divergence on H4 shows much about the lie it is trying to put out.
I only take RSI divergence seriously when the market starts to break structure. Take S&P 500 for example, the RSI (7,close) has been diverging since 1996 on the MONTHLY time frame. Until the market starts breaking structure, this divergence will keep on going.
Therefore, we MUST take structure into account when identifying RSI divergences.