The Euro touched a 1.4287 high late last night, just above the weekly 10 EMA of 1.4261. As I wrote on Monday, the weekly 10 EMA has been support since early March. Now it looks as though it may be serving as resistance.
On the three-hour chart, the pair might be in an ABC correction beginning with the low of 1.4049, going to A at 1.4244 and B at 1.4124. The potential price for C is 1.4245, 1.4319, or 1.4440. Of the three, I like 1.4319 (where C equals A) since that equates with 1.4326 which would be the top of the rectangle. This is also near a .382 retracement of the move down from 1.4548.
Support is at 1.4121 and 1.4049.
I went long yesterday at 1.4188. Obviously, I have moved my stop to breakeven.
Here's a 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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