Euro, after dropping to a low of 1.3970, has bounced to a high of 1.4119. Here it is struggling with a strong resistance zone of 1.4106 to 1.4162 that previously served as support. The .382 retracement of the move from 1.2874 to 1.4942 is at 1.4153.
On the hourly chart, price action looks impulsive with the rise to 1.4124 a possible fourth wave.
Note, that on the daily chart (not shown), the low formed a hammer so a drop below would be bad news. Support is at 1.3970 and 1.3863.
Here is 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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