Tuesday, November 16, 2010

EURUSD—at support

So far, at least, November doesn't look as though it's going to be good for Euro, despite the so-called "seasonal" factor, I wrote about the beginning of the month and despite the fact it came into the month with the bulls in control. It has dropped below October lows and the correction doesn't show any real signs of ending. There is strong resistance at 1.37 and while I doubt it will get much higher than that today, even stronger resistance at 1.3825/85 (EW count, fibo, and 10 and 20 day SMA). That would be a good shorting opportunity.

There are many potential price supports on the way down. As I noted yesterday, the 20 EMA on the monthly chart has been providing rough support (currently 1.3571). This is part of the reason it seems to be hovering above its low of 1.3561. Other supports are at 1.3504, 1.3463/39, 1.3335 (strong—it's former resistance and the price that many seem to be aiming for), 1.3286/70 and 1.3200. Quite a few levels in other words from which Euro cold launch a rally.

Meanwhile, let's see if it breaks 1.3561 in a reasonable fashion so that anyone not short can sell.

© 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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