Euro touched 1.4248 this morning, struggling to keep its rally alive from its Friday close of 1.4182. I'm long from last Friday at 1.4155.
On the hourly chart, it could have just completed an ABC correction for wave four. It came within six pips of C being .618 of A at 1.4208, assuming A began at 1.4198 and ended at 1.4137 and B ended at 1.4240. If so, it's beginning wave five. A potential price target for wave five is 1.4374 so there's still a little room to run. The target could be greater (1.4759) but that's rather ambitious. If C of four is not complete, potential downside price targets for the correction are 1.4179 and 1.4141. Both of these price tie in with some other support. If it gets there, I'll probably add to my position.
Strong resistance is just above at 1.4275/83 and negative divergence exists on the hourly chart. I'd expect a reaction there but it's not clear this little run upwards is over. After 1.4283, resistance is at 1.4345, 1.4400 and 1.4447.
Support is at 1.4204, 1.4189/65, 1.4147, 1.4041 and 1.4000.
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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