Price achieved 1.0494 before falling back where it is now hovering in an area of Fib confluence of 1.0464. This means it faltered near the top of the triangle at 1.0499 (1.05 also significant as a round number and is intertwined with polarity and Fib confluence). Ahead is the entire strong resistance zone of 1.05 to 1.0677. What it does with this resistance is going to most likely tell a very interesting story.
A pullback is more than likely given the overbought status of RSI (over 70) on the three- and one-hour charts. There's negative divergence on the one-hour chart (not shown). Ideally, this pullback would be contained by 1.04 which is roughly the 200 daily Simple Moving Average (SMA), Fib confluence, polarity, and the short-term uptrend line. Additional support is at 1.0298, 1.0274, 1.0205, 1.0146, and 1.0108.
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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