03/03/10 8:33 am - EURUSD: Turning down, long exited

(Note: I posted this at 7:33am, an hour before the time of this post. Corrected my blog time afterwards.)

Price is stalling at resistance around 1.3650..75 and short term (5-min) momentum indicators are turning down and show bearish divergences. Hourly RSI is also falling and has closed below the hourly EMA10 a few times, a sign that we’re near the top for this move. Still strong though, and I expect a more or less sideways movement over the next 24 hours, with a slight bearish bias.

I exited my long this morning at 1.3650 for a 105 point profit. We may still see a final run up to above 1.37, but I prefer to lock in my profit at this point since the downside risk has increased.  There is good support at 1.3590 and I expect that to hold in the short term. Should price move to above 1.37 I will start looking for a short entry opportunity.

Support: 1.3590 HSpptRsst   1.3515..00 SpptRsst   1.3460 HSppt

Resistance: 1.3653 HSpptRsst   1.3691 H-2-23   1.3787 H-2-17

RSI: Hrly: bullish, broke above decl. TL, Dly: capped by decl. TL resistance, still in bearish territory

Hourly Chart:

EURUSD Hourlies 3-3-10

March 3, 2010 · Filed under EUR/USD

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