Tuesday, February 17, 2009

Euro Hourly - Broke through support

Here is the Euro - USD hourly chart. As i mentioned yesterday that 1.27 is a crucial area. Today morning price action broke through the support line conclusively & decisively. Though price has again taken support at 1.26 multiple times during the last 3 hours & has thus bounced back again.

Thats because there are multiple trend lines which converge in this region of 1.25 to 1.27, one even drawing down from the swing highs in Sept. These should provide support.

But I am looking to go short near the 1.27 area again, my stops would be defined very well. So lets see price action develop. Volatility is finally returning back again & one can see the effects across all the majors as well as many crosses & trending moves should finally develop again.