On the three and one-hour charts, Euro is coiling in a symmetrical triangle. From an Elliott point of view, a triangle is a continuation move with a price target around 1.5015. Note that there would be one more leg down on this triangle to complete the E leg. Thus, one could go long if it reaches this, around 1.4790.
There is short-term negative divergence with RSI on the three-hour chart, although longer term, price and RSI remain in an uptrend together. The triangle also followed a broadening pattern. Broadening patterns after highs are often deadly. However, the combination of the broadening pattern and the triangle result in a rough diamond pattern. If this is a diamond, subsequent moves are usually rapid.
Support is at 1.4790, 1.4728/11, 1.4689, 1.4639, 1.4528 and 1.4496. First resistance is 1.4902, then 1.4961 and 1.5000/15. After that, there is 1.5105/16, 1.5163 and a potential price target at 1.5163.
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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