EURUSD—a little rally

Euro has pushed up to 1.2843 this morning and seems to be aiming for last Monday's 1.2919 high. Certainly lots of selling would come in if it gets there so longs at this point might not have much of an upside. I plan to be one of the sellers near 1.29. Support is at 1.2794, 1.2676, 1.2644 and 1.2588.

If Euro broke above 1.2919 it would cause the bears to pause and a break above 1.30 would be a psychological victory for the bulls. Above 1.30, though, runs it smack into a downtrend line from January of this year. I think a further down leg is inevitable but we'll see. Trade the chart, not one's opinion.

You can see on the weekly chart that price action is narrowing. Here's the 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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