02/01/10 12:02 pm - EURUSD: Mild Correction

The downward trend stalled at 1.3850, and price is consolidating above the hourly EMA10. I expect this correction to continue throughout the Asian session. The correction has so far failed to seriously test support at 1.3850, so I’m expecting that to happen eventually. The hourlies don’t look like they bottomed at 1.3850, a retest of that level is likely.

Hourly RSI is near overbought and resistance. Upward momentum is weak. 1.3850 really isn’t strong support, and 1.3660… 1.3740 should be the target of this downleg. Staying short.

Support: 1.3830 L-7-8   1.3745 DFibo38   1.3665 FiboExt of Dly Move

Resistance: 1.3986 HSpptRsst   1.4045 HSpptRsst   1.4130 HSpptRsst

RSI: Hrly: mildly bullish but near o/b, Dly: bearish, capped by decl. TL, near o/s

Hourly Chart:

EURUSD Hourlies 2-1-10

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