EUR/USD Daily Update, Fri 23, December 2011
Good morning,
Although market has shown yesterday retracement as we've discussed, looks like it has decided to hold a bit inside stop grabber bar for awhile.
On daily time frame there are 3 moments that I would like to discuss with you. First one is MACD Histogram (I do not have it on the chart). IT shows that current low at 1.30 has less momentum than 1.3250 low.
Second, here we can get another 1.618 BUtterfly buy with 1.2805 target as during previous consolidation.
And finally, third - this could give us 1.618 3-Drive buy. Logically puzzle could be combined easily - this is solid support on monthly. 1.2830 - target of weekly AB=CD, MACD hist. shows momentum easing, and finally 3-drive very often consists of side-by-side butterflies. Just take a look in our Forex Military School.
Now it looks a bit incredible - but that is just assumption and by now it looks possible.
This theory has 1 crucial point - 1.3224 high of stop grabber. Market should hold below it. If it will take it and hold above it - well, then we will have to look for something else.
4 hour chart shows bullish dynamic pressure, that points on possible some upward move. Potential level is 1.3190 - 0.618 extension of AB=CD.
hourly trend is bullish. Market has another Agreement at 1.3150. 1.3109 also exists but it has been tested already once, that's why there are chances that market will proceed higher.
Tomorrow is Christmas Eve - spend as much time with your family as you can. Markets are always be here...
