02/04/10 9:13 am - EURUSD: Likely to find support at 1.3745

The ECB left rates at 1% and the EUR/USD made new lows, currently at 1.3780. I expect prices to slide further towards key support at 1.3745, possibly even below that level. This could be the final “capitulation move” of this multi-day downleg and I expect a sizable correction soon. But the near term continues to be very bearish despite heavily oversold RSIs (both hourly and daily).

My short position is nearing its target. I tightened my stop to 1.4055.

Support: 1.3745 DFibo38   1.3665 FiboExt of Dly Move   1.3422 L-5-18

Resistance: 1.3850 HSpptRsst   1.4025 HSpptRsst   1.4190 HSpptRsst

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

Hourly Chart:

EURUSD Hourlies 2-4-10

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