12/07/09 11:17 am - EURSUSD: Looking to sell rally

Last weeks close at 1.4845, below the daily trend line, is a bearish sign and turns my bias bearish. New lows below 1.48 (1.4755) were made in Europe last night, and price is currently working off oversold conditions. I am waiting for a recovery of RSI to 50 before going short. 1.49 is likely to hold, but if not we may see a push to the daily EMA10 and 20 at around 1.4950. Will look for a short entry near 1.49 with a stop at 1.5015, and my target is 1.4640, 15 pips above support at 1.4625.

Support: 1.4755 HSppt   1.4685 L-11-1   1.4625 L-11-3

Resistance: 1.4900 HSpptRsst   1.4550 DEMA10/20   1.4990 HSpptRsst

RSI: Hrly: bearish, recovering from oversold, Dly: slightly bearish

Hourly Chart:

EURUSD Hourlies 12-7-09

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