01/28/10 10:54 am - EURUSD: Down pressure persists

Down pressure persists, and the gentle roll over pattern that the EUR/USD pair performed over the last few days is difficult to trade if you’re waiting for a bounce to go short. It’s exactly that “waiting for a bounce to short it” that maintains pressure on the market, with the result of it dropping further and further. It is now more likely than not that we’ll reach key support at 1.3745 this way, without a major bounce. This bounce will probably come after this level is reached or even broken, when the market looks “completely bearish”.

A short term correction up cannot be ruled out since RSI is moving in oversold territory, but there are no signs of a reversal yet. Expecting further downside with little support ahead of 1.3750.

I missed my oppportunity to add a second position near 1.42 and will be content with my first position. I tightened my stop on this position to 1.4355.

Support: 1.3935 L-1-27   1.3830 L-7-8   1.3745 DFibo38

Resistance: 1.4045 HSpptRsst   1.4130 HSpptRsst   1.4207 HSpptRsst

RSI: Hrly: bearish, Dly: bearish, capped by decl. TL, near o/s

Hourly Chart:

EURUSD Hourlies 1-28-10

January 28, 2010 · Filed under EUR/USD

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