The pair has dropped to a low of 1.3292 this morning and seems to be rallying a bit now. If you look at the weekly chart you can see a 5 wave count down from the November high of 1.5144 which may have completed a wave one at the low last week. If this is true (and I must say that EW counts have been difficult lately), it's possible that the pair is in wave A of a corrective move up. It's possible it could reach as high as 1.3853. Let's see what happens today. If it makes a new low then that's very bearish. The other thing to note on the weekly chart are the upper and lower shadows on the candles. They show the indecision surrounding the pair.
Support is at 1.3292, 1.3202, 1.3128 and 1.30 (big psychological level). Below that is 1.2965 and 1.2863. Resistance is at 1.3400, 1.3447, 1.3525, 1.3585/91 and 1.3692.
Here's the weekly chart:
© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
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