Yesterday’s stall ahead of 98.9, the 50% retracement of the 110.70/87.10 range in place for the last six months (and the duration of the financial crisis) has prompted dealers to book profits and look for levels to buy back the pair on dips. The most aggressive may want to buy against 96.50/55. There is a low at that level on the hourly charts and the 38.% retracement of the rally from 92.50 to 98.70 comes in just below at 96.36. Keep stops tight as there is plenty of chart support around that area as well and if it gives way a deeper retracement may be afoot.
