EUR/USD Short-Term Oversold
Jason Sen | Dec 22, 2014 07:42AM ET
EURUSD bottomed at 1.2219 which is also 4 year trend line support. This therefore is extremely important. The pair are oversold short term and this is the best chance bulls have to mount a strong defense and halt the decline. Never the less, be ready to go with a break below 1.2200 and use resistance at 1.2220/30 to get back in to shorts for a move towards trend line support at 1.2185 and perhaps as far as NINE YEAR trend line support at 1.2135/25.
If we do manage a recovery, above 1.2245 is more promising and opens the door to a test of first resistance at 1.2275/80. A high for the day possible but shorts need stops above 1.2300. If we continue higher look for a test of the next resistance at 1.2335/45. Shorts need stops above 1.2370.
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