EURUSD—at support

The Euro achieved 1.2918 yesterday which was well within what I identified as a target last week, assuming it was in wave C. Wave C would then have been 1.618 * wave A. Because this happened on the holiday I didn't short. It has since fallen to a low of 1.2736, dropping through the 10- and 20-day daily SMA at 1.2761/71. For the past three hours it has been trying to base. This is .618 of the August 31 to September 6 high and 50% of the move from 1.2151 to 1.3335. One would expect stalling. I also think it's possible for a rally here, possibly to a retest of the 1.29 level. I bought at 1.2760 since the stop can be tight. However, this may be a stop and reverse situation.

Resistance is at 1.2761/71, 1.2833, 1.2918/30 and 1.3000. Support is at 1.2736, 1.2675/63, 1.2626, and 1.2588.

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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