I'm still long from 1.3517 and Euro is behaving in line with my analysis yesterday. On the 3-hour chart, this looks as though it's leg c of a three wave abc correction which I wrote could carry it to around 1.3670. The high so far this morning is 1.3667, fib confluence and polarity.
There's a good chance this little rally could achieve 1.3727 (.618 of the move down from 1.3862 to 1.3509). At this point, I'd be looking for signs of failure to find a position that put me back in synch with the overall downtrend. However, if they don't exist and price closes above 1.3727, I'd look for another run to 1.3862. Where I'd short for sure.
If the pair should reverse downwards, expect initial support at 1.3509 and fib confluence of 1.3485/81 (.382 of 1.2874 to 1.3862 and .382 of the move up to 1.3862 from 1.3255). After that is 1.3361 and if that broke then 1.3244.
Here's the three-hour chart:
© Dianne Fecteau, 2011. 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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