EUR/USD May 26th

The pair is trading @ 1.2171 falling for the third consecutive day; we are approaching again the low of few days ago that is also the low of the last 8 and 1/2 years if I am not wrong. Probably a good correction is needed before bet on the violation of 1.2000, fresh money are needed for the bears to go further. Probably the double low at 1.2170 area will be the start for a good correction to 1.2800 area? well it may happen.

Technically the pair is trading on the lower band of bollinger; The RSI is @ 29.6 and the ADX is 49.88; looking at the 4 hours chart I would bet on a correction to 1.3000 area.

The trend to be clear is bearish but I think that there will be more pips on a possible correction than in a continuation of the trend.

here are some support and resistances:

S3 1.1870; S2 1.2048; S1 1.2108; R1 1.2286; R2 1.2404; R3 1.2582

my plan is to close yesterday short position and to go long 1x unit;

we may close it @ 1.2230 so few pips, or we may risk for a serious correction.

let's see tomorrow evolution.

EURUSD May 25th 2010

The pair is trading @1.2333 right now. It is retracing after the low of the day that was 1.2172; considering the high settled yesterday night and low of the day the pair has recovered more than 61.8%. Right now the pair is trading close to the lowest level since 4 years. last week after fixing the new low, the pair went up around 500 pips, most of that is due to a short covering resulting from a record short in the pair. My view says that the pair will test the 1.2150 area again and will approach the 1.2000 area really soon.the RSI is @ 72 and the ADX is @ 37; I think we have all the premises for a good bearish movement.
here are some resistance and support:
S3 1.1931; S2 1.2109; S11.2224; R1 1.2402; R2 1.2465; R3 1.2643
my plan is to go short on high, so right now;
I am selling 1x unit @ 1.2340;
target is 1.2000