EURUSD—struggling with resistance

The pair climbed nicely to .13704 before being repelled by the downtrend line from March 3. I have two long positions from 1.3571 and 1.3612. I just took partial profits on the one from 1.3571 at +80 pips. The long from 1.3557, which I blogged about on Friday, stopped out at breakeven.

I haven't changed my longer term outlook about this pair—I believe it will go lower—but we're currently in a correction that could reach up as high as 1.4039. I'd certainly be happy going short at that level. It could also stall out at 1.3750 or 1.3850.

Resistance is at 1.3704,m 1.3736, 1.3800, 1.3839, 1.4022, and 1.4100. Support is at 1.3659, 1.3626, 1.3593, 1.3531, and 1.3435.

Here's the hourly chart:






















© Dianne Fecteau, 2010. 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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