Contraian Bounce? Euro Chart

[B]Eur/Usd.[/B] The Euro makes up nearly 60% of the U.S. Dollar Index, and as such is a crucial pair to review when trying to judge overall USD sentiment. [IMG]http://www.thelfb.com/wp-content/uploads/04-15-08/TheLFB-25-30-08-Members.JPG[/IMG] 05/30/08-06/01/08 [B]Contrarian Bounce? [/B]Analysis by Semar Buzau. The Daily chart is showing that although the near-term trend is Short, the overall trend is still undeniably Long. The 1.5450 area is the 23% Fibonacci support from the move that started in August 2007. The Linear trend-line from the same time has 1.5100 as the next area to hold if things drop lower; on the way lower the 1.5250 area will be hard to break. It really means that a huge push down will have to come, with the Dollar Index going on an upside rampage, to break such important price points. In the week of the rate ECB meeting, that may not happen. A technical bounce higher from oversold at 1.5450 could easily reverse the recent Dollar buying, and a test of 1.5850, using a break of 1.5600, and 1.5450 as a support area, could be favored by the market. Pivotal times- the signal could come from breaking Friday’s High or Low, either one may initiate a trade. These are posted every day, [url]http://www.thelfb.com/trade-desk-thoughts/[/url] [B] Semar Buzau TheLFB Trade Team[/B]