09/29/08 11:13 am - EURUSD: Sharp spike up after House failed to pass TARP bill.
News that the House failed to approve the TARP bill caused the dollar to be sold off very quickly, and EURUSD spiked up by over 100 points. The pair quickly fell back to 1.4425, and is now moving up again, likely for sustained gains.
Alternatively we may see consolidation at current levels with high volatility and and a retest of 1.4301.
Action Plan: Stay long. Our long survived the dip into 1.4373, where the 50% Fibo retracement provided support. Long is now in play, but high volatility is a concern. Stop 1.4350, Target 1.4590.
Support: 1.4373 Fibo50 1.4301 HSppt 1.4257 Fibo38
Resistance: 1.4489 Fibo62, HSpptRsst 1.4555 HSpptRsst 1.4592 Fibo62
RSI: Hrly: Broke through declining TL, Dly: neutral
Hourly Chart:





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