EURUSD—.382 retracement

Euro hit a low of 1.2244, three pips above the .382 retracement of the rise from 1.1876 to 1.2467. That may be all she does before she starts upwards again but I still think the 1.2172 target is attractive. That would be 50% retracement. But there's a lot of support at the 1.2244 level—support, Fibonacci confluence, etc.

There's extreme negative sentiment against the Euro. When price dropped again after the rally to 1.2467, it plays into that mindset. If this is a B wave as, I blogged yesterday, then this is a characteristic of them—they're sucker plays. So if you're shorting you have to use tight stops.

I'm short from 1.2379 and 1.2285. I had a short from 1.2267 but it was stopped yesterday for -30 pips.

Support is at 1.2241, 1.2200, 1.2167/50, 1.2117, and 1.2045. Resistance is at 1.2318, 1.2355, 1.2467, 1.2525, 1.2673, 1.2701, and 1.2741.

Here's the 3-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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