The pair finally began a rally overnight getting up to a high of .8180 this morning after yesterday's low of .8068. Sellers are coming in, obviously, because .8180 was the June 24 low so it's stalling here. I'm holding off a bit because momentum, as represented by RSI, is still strong on the hourly chart. It needs to close below .70. At that point, whether price will still be at a decent level remains to be seen. It would be ideal if it could work its way up to the resistance at .8225/40. It would make much sense to short there. But we'll see.
Looking at a daily chart, yesterday's low could be the end of wave three. There's also slightly positive divergence on the daily chart.
Resistance is at .8180, .8225/40, .8285,.8300, and .8400. The latter should cap any rallies. Should the pair head down, .8107/00,.8068, .8000 and .7900 are all support.
Here's the three-hour 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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