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Euro Cross Pick
Written by article default Monday, 08 November 2010 06:21
After getting stopped out of the short EUR/USD trade following the non-farm payrolls report on Friday, the exchange rate broke below the 20-Day SMA (1.3952) to reach a low of 1.3890 on Monday, but the pair appears to be finding intraday support around 1.3880-1.3900, the 61.8% Fibonacci retracement from the 2009 high to the 2010 low. However, given the bearish divergence in the daily relative strength index, the pair looks poised to push lower in the days ahead as the near-term rally fails to break above 1.4300. As a result, if we see a close below 1.3880, I will look to take another stab at shorting the euro-dollar and will target former support around 1.3700, with a stop at the 20-Day SMA at 1.3952.Click here to learn more about DailyFX.