EUR/USD Daily Update, Wed 11, April, 2012
Hi everybody,
today update probably will be a bit boring, since, as I've said in video - no breaking price action happened. Market stands in tight consolidation that reminds flag. Overall context still holds bearish.
Standing in tight range usually tells that market building energy and probably indecision. Both of them should lead to solid price action. And at least currently, it looks like downward direction is more probable.
On 4 hour chart trend holds bullish and now patterns. Hence we can't enter short right now, we have to wait, when trend will turn bearish. Bullish trend also suggests that reaching of 1.3155-1.3165 is not impossible.
On houlry chart trend is also bullish. Market has failed yesterday with 3-Drive pattern, but still it has not reached 1.618 extension of initial AB=CD pattern and has not continued move down yesterday. This makes me think, that we still can see testing of WPP.
Also there is a hint on Butterfly "Sell", that has a 1.27 target right at WPP. So, if you're scalper, you may try to trade long on 5-min chart.
But if you wait clarification for daily time frame - probably is better to wait a bit more - either for testing of WPP or shifting intraday trend to bearish and downward continuation.