10/01/09 6:29 am - EURUSD: Continuation of the rebound

Last nights break below the rising hourly trendline led to a re-test of yesterday’s low at 1.4525, coinciding with the declining trend line of the former channel, now a significant support line. Prices bounced off this line leaving a double bottom and bullish divergence on the hourly chart. I expect a continuation of this bounce to next resistance at 1.4610.

The sharp drop occurred only minutes after I went long. I plan on exiting my long for a small loss at 1.4600.

Support: 1.4525 HSppt   1.4515 L-9-14, Fibo50   1.4465 Fibo68

Resistance: 1.4610 HRsst   1.4672 HRsst   1.4718 H-12-18, HRsst

RSI: Hrly: bullish FS, Dly: starting to break below support trend line but bounce near 50 possible

Hourly Chart:

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