01/20/09 6:55 pm - ERUSD: Bounce imminent, but likely to be limited

A long string of divergences on the hourly RSI chart call for a bounce soon. I missed going short on the last move waiting for a better entry near 1.32, but will look to sell the next bounce, or buy into the beginning of it with a tight stop. 1.2850 is likely a short term bottom, but doesn’t look like the final bottom yet. A more convincing bottom would be formed by a bounce to 1.30 from current levels, and then one final “fall-out” move to 1.2670, the next key support level. Will patiently wait for confirmation on either trade.

Hourly Chart:

Daily Chart:

January 20, 2009 · Filed under EUR/USD

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