Sive Morten
Special Consultant to the FPA
- Messages
- 18,699
EUR/USD Daily Update, Fri 11, March 2011
Hello everybody,
EUR has hit 1.38 area - 3/8 Fib support, weekly pivot support and 1.618 target of hourly batterfly. The nasty sell-off has come from fundamental news - Moody's has downgraded Spain rating to AA 2 (1 notch), also some speculation about future of Portugal, Greece and Ireland continues - as we've once said - the periphery problems will press EU economy, looks like this starts to happen.
Ok, let's move to pure technics...
Although daily trend turns bearish - B&B is directional trade, and Direction overrules trend. Daily context for B&B is still valid - just 2 closes below 3x3, market at strong support. If market will not hold here - possibly, context for B&B will be doomed. But now it still possible. The target - 1.3915. Still...
4-hour and 1 hour charts
We had strong sell off yesterday. Taking this into account, I prefer to see some clear Buy patterns on hourly time frame before enter in B&B trade. Currently I do not see any. After so strong sell off is too dangerous to buy blindly right from support area. May be it will be reverse H&S on daily, I do not know yet.
You can see, that 1.3740 AB=CD target stands just below the market. I prefer to see, that market will hit it, and then show some bullish reversal pattern or something, that gives me the confidence to enter Long
P.S.
By the way, The first part of Chapter 2 of Forex Military school has released today:
Forex Military School - Forex Peace Army Forum
Hello everybody,
EUR has hit 1.38 area - 3/8 Fib support, weekly pivot support and 1.618 target of hourly batterfly. The nasty sell-off has come from fundamental news - Moody's has downgraded Spain rating to AA 2 (1 notch), also some speculation about future of Portugal, Greece and Ireland continues - as we've once said - the periphery problems will press EU economy, looks like this starts to happen.
Ok, let's move to pure technics...
Although daily trend turns bearish - B&B is directional trade, and Direction overrules trend. Daily context for B&B is still valid - just 2 closes below 3x3, market at strong support. If market will not hold here - possibly, context for B&B will be doomed. But now it still possible. The target - 1.3915. Still...
4-hour and 1 hour charts
We had strong sell off yesterday. Taking this into account, I prefer to see some clear Buy patterns on hourly time frame before enter in B&B trade. Currently I do not see any. After so strong sell off is too dangerous to buy blindly right from support area. May be it will be reverse H&S on daily, I do not know yet.
You can see, that 1.3740 AB=CD target stands just below the market. I prefer to see, that market will hit it, and then show some bullish reversal pattern or something, that gives me the confidence to enter Long
P.S.
By the way, The first part of Chapter 2 of Forex Military school has released today:
Forex Military School - Forex Peace Army Forum