02/26/09 9:42 pm - EURUSD: Entry order set at 1.2675

Downward momentum is slowing and the pair is nearing a key support point at 1.2670 where the rising and declining hourly trendlines intersect. The 21.4% Fibo retracement at 1.2647 is just below, providing good support. A break below 1.2640 would call for further downside with 1.2557 as the next support level.

Hourlies are oversold however, and a bounce is due. Note the similarity with price action on 2/5/09. If the similarity holds, we should see a sizable bounce starting just around midnight PST, at the beginning of the European session. This may be followed by a typical Euro-bullish Friday. So there’s a good chance of a strong bullish move over the next 16 hours. And at 5:30PST we’ll get the US GDP report which could be potentially very bearish for the dollar if another large contraction is reported.

I’ve placed an entry order at 1.2675 to catch a drop towards those key support levels. Stop is set at 1.2635. Target is 1.3240 If my entry order is not hit tonight, I will remove it and stay sidelined overnight.

February 26, 2009 · Filed under EUR/USD

2 Comments »

  1. ned Said,

    February 27, 2009 @ 12:32 am

    11:30 pm … bouncing off 1.27 ish…
    I notice that your clock times seem to be a few minutes ahead of my ‘atomic’ wall clock re your above transaction messages, though not elsewhere… ?reason?

  2. admin Said,

    February 27, 2009 @ 12:19 pm

    It’s because I live in the future, makes predicting the next price move easier. But don’t tell anyone. ;)

    But seriously, I have no idea why that is. Maybe the web server’s clock is off by a few minutes.

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