EUR/USD Daily Update, Fri 18, November 2011
Good morning,
On daily time frame market stands indecision and forms some inside trading sessions as doji. So, some breakout is not so far from us, I suppose. Trend is still bearish. Next support level is 1.3377
On 4 hour chart market has tried by failed to accomplish stop grabber pattern. Also, it has failed with Double bottom and turned to some kind of triangle/pennant consolidation. Also we see here bearish dynamic pressure, since price action does not support bullish trend on 4hour chart. That factors tells that probably bears have more power than bulls. Still, market has a tendency to fake outs, especially when pattern is clearly seeing.
So, here are two scenarios that are very common to triangles - two opposite batterflies on hourly chart. Although market signs tell that bearish scenario is more probable, still due to tendency to fake outs - we can't exclude Butterfly "Sell" either.
Probably during today's trading session we will see some clues and solutions to this riddle on lower time frames. Anyway pull the trigger only when you will get sufficient confidence to do that.