Euro is testing the uptrend line drawn on the daily chart from January with the high so far today of 1.4178. This resistance is reinforced by the fact that it’s a fib confluence zone—the .382 retracement of 12874/14942 is 1.4152 and the .50 retracement of 13429/14942 is 1.4186.
I’m of two minds about this type of resistance. If it keeps battering at it, Euro may break through. On the other hand, another rebuff could send it back to its downward slide.
If this is an ABC correction on the hourly time frame, potential C wave targets are 1.4178, 1.4217 and 1.4281. The first one supports the high as resistance so I may add a short position with a tight stop. One must keep the weekly support line in mind, however.
© 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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