EUR/USD Daily Update, Tue 23, November 2010
Good morning,
Our B&B trade has done well. Currently market is struggling with further down move and I think, that it can show some retracement to the upside.
At the same time there are some important moments on daily time frame, that make me count on further move down;
1. After strong sell-off market has shown only 3/8 retracement;
2. Daily trend is bearish, and market neither oversold nor overbought
3. there is a nice bearish engulfing pattern on daily time frame
4. ABC target and Butterfly target Agree with 1.3250-1.3370 area of weekly support.
Now, in shorter-term... Personally, today, I'll be watching for retracement to 1.3610-1.3625 area - weekly pivot point and hourly confluence resistance. Move to this area should be gradual. If I'll see some signs of weekness there -then possibly I enter short with the target at least weekly pivot support 1 at 1.3494. Also there is an hourly ABC target at 1.35.
Just couple of warnings - if market will blast off through weekly pivot - don't be short. It means that retracement will be deeper on daily time frame. Second - tommorow market will be thin due Thanksgiving's eve.