Sive Morten
Special Consultant to the FPA
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EUR/USD Daily Update, Tue 01, February 2011
Good morning,
Looks like EUR turns in a way of DRPO and has held above pivot. I hope that you do not have any short positions yet, as we've discussed in research - "If market will move above pivot and hold there - don't be short".
So, for confirmation of daily DRPO we need second close below Green line on the daily chart, but before that I expect that market will take out the previous highs, because:
1. 0.618 Fib expansion target on hourly chart at 1.3760 - just above the previous highs
2. I do not see any "Sell" signals on hourly chart of EUR, but this could be H&S or Butterfly Sell, 3-drive sell - all these patterns assume reaching of 1.3760-1.3780 area
3. There is a MACDP failure pattern on hourly chart on EUR
4. I see nice Butterfly "Sell" on GBP 4-hour chart
So, I think that today we will have to look for possible Sell signals on EUR around 1.3760-1.3780 area. If signal will be clear, possibly we even can anticipate DRPO confirmation on daily chart, for better entry point.
Good morning,
Looks like EUR turns in a way of DRPO and has held above pivot. I hope that you do not have any short positions yet, as we've discussed in research - "If market will move above pivot and hold there - don't be short".
So, for confirmation of daily DRPO we need second close below Green line on the daily chart, but before that I expect that market will take out the previous highs, because:
1. 0.618 Fib expansion target on hourly chart at 1.3760 - just above the previous highs
2. I do not see any "Sell" signals on hourly chart of EUR, but this could be H&S or Butterfly Sell, 3-drive sell - all these patterns assume reaching of 1.3760-1.3780 area
3. There is a MACDP failure pattern on hourly chart on EUR
4. I see nice Butterfly "Sell" on GBP 4-hour chart
So, I think that today we will have to look for possible Sell signals on EUR around 1.3760-1.3780 area. If signal will be clear, possibly we even can anticipate DRPO confirmation on daily chart, for better entry point.