EUR/USD Daily Update, Fri 14, January 2011
Good morning,
On daily time frame market has hit daily overbought. Just above the market the area of daily confluence resistance 1.34. This is a context for "Stretch" Sell pattern. At least, probabiility suggests that market could bounce from this area.
if you're bull - may be it's time to take some chips off the table, or tight stops.
On 4-hour chart we see excellent thrust to the upside. From one point of view - we can count on some Sell Signals due to daily context. From the second view - this is a nice context for scalp B&B Buy pattern and I think that 1.3260 area will be suitable for this trade. But keep in mind that this should be only scalp trade - we should not marry any Long position currently.
On hourly chart market almost has reached 1.618 target. So, personally this is an area when I will be look for Sell signals - this could be H&S, Butterfly "Sell", 3-drive Sell, 4-hour DRPO Sell. Anything...
If I'll see any, then I'll take it, because market at daily Confluence resistance and Overbought.