09/30/08 6:57 am - EURUSD: Slide accelerates
The Euro could not hold its gains made after the announcement of the TARP bill rejection and continues to lose ground against the dollar. The slide accelerated after key support at 1.4373 (50% Fibo retracement) was broken yesterday in Asia. Liquidity in the US financial system continues to be a problem, causing a high demand for the US Dollar and high volatility. The slide currently underway will likely continue until the next resistance at 1.4149, followed by 1.4068. We may see a bounce first due to oversold hourlies, followed by another leg down towards 1.4068.
Alternatively, if the pair manages to break back above 1.4301 and the declining trendline is broken, we should see further upside towards 1.4373.
Action Plan: Our long was stopped out yesterday in early Asia when Fibo50 was broken. Failed to take profit during the sharp spike in NY trading. Long term trend now clearly down, and we must trade the short side. Highly oversold hourlies offer low risk/return for a short trade at this point. Looking to sell a failure near 1.4257.
Support: 1.4149 L-9-19 1.4070 L-9-16 1.3881 L-9-11
Resistance: 1.4301 L-9-29 1.4373 Fibo50 1.4489 Fibo62
RSI: Hrly: Capped by decl. TL, Dly: falling
Hourly Chart:
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
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