04/14/09 5:44 am - EURUSD: Bouncing off key support, long

The pair consolidated as expected and hit the key support area between 1.3230 and 1.3265 this morning. I expect a decent bounce out of here with a move towards 1.35 within a day or two. RSI has corrected to a healthy level of 30. Similarity with price action on 4/3 holds. 1.3235 is key support, and should hold.

On the dailies, 1.3240 is the 61.8% Fibo retracement, and the EMA10 lies at 1.3177. Yesterdays high close above it called for a pullback to the EMA10 which is where we are now. The pair looks poised for further upside.

I went long with several positions this morning resulting in a net entry level of 1.3260. I plan on lightening up on my higher-entry positions when price gets near 1.3280, and tighten my stop on the other ones.

Support: 1.3235 Fibo50, HSpptRsst   1.3198 Fibo62, HRsst   1.3180 HSppt

Resistance: 1.3275 Fibo38   1.3335 Fibo50   1.3390 Fibo62, H-4-13

RSI: Hrly: capped by decl. TL, Dly: turning up and back above 50

Hourly Chart:

April 14, 2009 · Filed under EUR/USD

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