Sive Morten
Special Consultant to the FPA
- Messages
- 18,635
EUR/USD Daily Update, Wed 03, August 2011
Good morning,
although we've expected that market hits 1.4136 AB-CD target yesterday it has happened today just couple hours ago. If you will drop your time frame to 30-min chart you'll see nice W&R pattern. Also market has not quite reached trendline on 4-hour chart and try to jump out from current levels, shift trend to bullish.
Still, CD leg is much steeper than AB. Also we see strong nasty black bar right to the target area of AB-CD pattern. These are bearish signs that point current move up (if it will happen at all) probably will be just a retracement rather than reversal.
On hourly chart we see 2 areas of resistance to watch for - 1.4177-14187 and 1.4258-1.4268. For bearish momentum is better if market will stop at nearest resistance, still it will not be the tradegy if market even will reach deeper move, right to 0.618 Fib resistance.
Current ustable situation on the markets does not let us to make some extended forecast. It's better to focus on short term trades, until situation will become clearer and markets more stable.
So, we have strong bearish momentum on daily time frame, but market has reached significant area of support and shows some bullish signs on lower time frame. Probably we should focus today on potential retracement with the nearest target around 1.42 area.
Good morning,
although we've expected that market hits 1.4136 AB-CD target yesterday it has happened today just couple hours ago. If you will drop your time frame to 30-min chart you'll see nice W&R pattern. Also market has not quite reached trendline on 4-hour chart and try to jump out from current levels, shift trend to bullish.
Still, CD leg is much steeper than AB. Also we see strong nasty black bar right to the target area of AB-CD pattern. These are bearish signs that point current move up (if it will happen at all) probably will be just a retracement rather than reversal.
On hourly chart we see 2 areas of resistance to watch for - 1.4177-14187 and 1.4258-1.4268. For bearish momentum is better if market will stop at nearest resistance, still it will not be the tradegy if market even will reach deeper move, right to 0.618 Fib resistance.
Current ustable situation on the markets does not let us to make some extended forecast. It's better to focus on short term trades, until situation will become clearer and markets more stable.
So, we have strong bearish momentum on daily time frame, but market has reached significant area of support and shows some bullish signs on lower time frame. Probably we should focus today on potential retracement with the nearest target around 1.42 area.