On the three-hour chart, the sideways range the pair has been in since the end of December is evident. This range is 80.94 to 85.07. Within that range the downtrend line from the 89.12, July 2010 high is coming in at 82.40. This is near the 82.73 downtrend line of the bull flag. The two of these should serve as support to the current move down. This is the price for a possible short-term long position.
If the pair rallies from this low, resistance is at 83.55, 83.97, and 84.51 (Dec. high). A possible price projection based on EW is 84.99 (wave v = wave i). This is within the range and I'd look to short there.
If the pair doesn't rally then look for support at 81.12 and 80.94.
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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