I missed the short in this pair as it happened late Friday and I didn't analyze the pair over the weekend where I might have gotten in earlier today. This happens—some trades get away. However, it may retest the high.
When I wrote last week about this being the C leg of an ABC correction, I wrote that the potential for 1.618 of the A leg was 111.09. The pair reached 110.99 before falling. On the hourly chart, there's a low this morning of 109.58. This was a hammer candle and support should hold. A close below targets 1.0895 (prior resistance) and then 108.50 and 108.00. Below that is a zone of support from 107.86 down to 106.83, then 106.24 and 105.83.
Resistance is 110.00, 110.99, and 111.68/97 (strong).
I'll watch for a rally in this pair.
© 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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