The pair is managing to stay above the triangle and above the 10, 20, 50, 100 and 200 day moving averages but it's still having a hard time. So far it has touched 1.0668, a measly four pips above yesterday's high of 1.0664. Fib confluence is still beckoning as support at 1.0586. Also around there is the short-term uptrend line from yesterday on the hourly chart. Finally there was a shooting star candle at the top and with negative divergence on the hourly chart, we may see a drop to at least the 1.0586 area.
Below that would be yesterday's and today's lows of 1.0557/74 and below that the breakout point of 1.0480. All five of the previously mentioned moving averages are clustered between 1.0345 and 1.0452 so there's a support zone lined up. Resistance is at 1.0668, 1.0700 and 1.0856.
Here's the one-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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