EURUSD—faltering and floundering

With the drop to 1.2840, the Euro posted a lower low on the hourly chart. It also made a hammer at that low so it's going to be important to see if it drops below that (bearish) or manages to stay above. There's support at 1.2768, 1.2683/60 and 1.2523.

There's not a lot to say about this pair that I haven't already said. The potential is still there technically for the pair to reach the 1.31 area. 1.3108 is 1.618 the length of the A wave; 1.3150 was the price target of the bull flag from the three-hour chart last week; 1.3094 was the spike high from May 10th. Until this pair overtakes those numbers it's a waste of time to talk about the price potential of the inverted head and shoulders.

Since the pair has broken uptrend lines in both price and RSI, I'll probably short on a rally.

Here's an hourly 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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