EUR/USD Update, Tue 22, 2010
Good morning everybody,
So, market has decided to not wait until monthly pivot point and shown us nice bearish daily engulfing pattern yesterday (see attachement). Now it at weekly pivot point 1.2304.
Now let's look at 1-hour chart. First of all, I want to attract your attention to the power of down move. Although it's not just as falling stone but rather solid still. Second, market does not reach OP yet. So, the power of initial move down makes me think that market will show another leg, may be to weekly pivot support 1 area. In the nearest term I expect that market will reach OP and then probably may bounce a bit. Anyway I do not see any Buy signals right now (may be short-term convergence, but it's not very reliable for me).
So, my plan will be as I've mentioned in the begining of this thread - If I'll see any Buy signals from weekly Pivot - I'll take them, but I suspect that this will be very short term trade due to solid previous move down. This trade, in fact, will be just a retracement from this move. I think that market can move to weekly pivot support 1 then.