EURUSD—weekly

On the weekly chart the 20 EMA (currently at 1.3470) supported the Euro last week. Its low was 1.3447. Early this morning, the rally from that low reached 1.3786 (.382 of the move down from 1.4282 to 1.3447). Euro failed there. The low since then has been 1.3616. This is a fib confluence point near the 50% point of that move as well as the .382 of 1.2588/1.4283. It makes sense that Euro is trying to rally from this. If it can't—well, maybe we'll finally see a necessary correction.

If the pair breaks the round number at 1.36, support on the weekly chart is at 1.3447 (the hammer), 1.3335 (August high) and 1.3270 (weekly uptrend line from June). RSI has broken below its uptrend line so it's reasonable to watch for whether price might do so as well. There's a resistance zone between 1.3800 and 1.3865 (round number, Elliott Wave count, 50% fibo, and polarity).

Here's the weekly 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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