The pair closed the week Friday below parity at .9959. Note that last week's low of .9706 confirmed the double top with a potential price target of .9401. However, the rally has been strong—the pair touched 1.0070 this morning, well above the .618 from the move down from 1.0158. I went long last week at .9940 with a price target of 1.0053. Obviously, I took some profits at that point. Before reversing and going short, however, I need to see multiple bearish signals on the shorter-term charts.
On the hourly chart, the pair looks as though it's completing a third wave up so expect a reaction, possibly only to 1.0054 or .9987. Below that is support at .9959, then .9872 and .9781.
Here's the hourly 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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