10/30/08 7:59 am - EURUSD: Bounce likely

Healthy looking correction underway after the euphoric run up to 1.33 has proven unsustainable. Pullback has almost reached the 61.8% Fibo at 1.2926. The hourly RSI trendline is hit, and should provide support, as well as the hourly EMA20, and the bottom of the price channel. A bounce from here is very likely, at least short term.

Alternatively, we may see a break below 1.2926, with next support coming in at 1.2842.

Action Plan: Plan on going long on bounce out of 1.2926, stop would be at 1.2775, initial target 1.33.

Support: 1.2926 Fibo62    1.2842 HSpptRsst    1.2812 Fibo50, HSppt

Resistance: 1.3150 HSpptRsst    1.33 H-10-29    1.3343 L-10-16

RSI: Hrly: supported by rising TL, Dly: bounced off rising TL, room for more upside

Hourly Chart:

October 30, 2008 · Filed under EUR/USD

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