(1,3028) The EUR/DOLL confirmed a very weak closing last night well below the low of the previous session but also well below the support of the negative outside day at 1,3145. At the present level the European market is again starting with a gap down suggesting a direct 1,30 undershooting. Next support of interest is the support line at 1,2950 and while below 1,3080 on an hourly closing we should see a test of the this line. A possible daily closing below 1,3045 tonight will be negative for the EUR/DOLL suggesting a s/t top is in place!! The indicators of the daily chart are now well negative and also those of the s/t ones are below the line supporting lower levels. In the hourly chart we have however oversold condition and a potential positive reversal situation; but, and this is very interesting, the move above 1,32 failed to confirm new bearish divergences!!!!!!!!! Anyhow oversold condition could limit the downside and even favour a rebound. For this reason we close our short position here at 1,3032 but avoid any long position for the moment if not close to the support line. Keep in mind however that a possible break below 1,2950 confirmed by a daily closing will suggest a retest of the 200 days line at 1,2782!!!!
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