First, both price and RSI have broken below their rising trend lines (drawn in red) which is bearish. Note, though, that price is near a fibo, a fib confluence level and a price support. The pair looks as though it is in the fifth wave of five waves down from the 1.0183 high so one would expect a correction. There is also positive divergence (lines drawn in blue) which hints at a possible bounce. With all this I'd look for a bounce to 9852 to 9944 (I know, a pretty wide range but this isn't an exact science—closer targets may be found during a bounce on shorter-term charts) at which point, depending on momentum, I'd try another short. If it doesn't get there, closes below .9785/50 would hint at lower lows, first to .9650 and then .9406.
Here's the three-hour 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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