EUR/USD Daily Update, Wed 22, December 2010
Good morning,
during previous days EUR shows nothing really interesting, no any particular signals to trade.
On daily time frame there is only one thing that is worthy to pay attention to.
This is possible MACD Predictor failure pattern. Market has reached 0.786 Fib support and shows some signs of retracements. Yesterday trend has turned to bearsih. If today market will close above 1.3150 area trend will shift to bullish again, and people who took previous signal will be trapped in wrong possition.
Usually this pattern leads to previous extremes. In this case, I suppose 1.34 area could be reached.
On 4 hour chart we see some bullish signs - MACD bullish divergence in area of 0.786 Fib support and bullish wedge is forming. But one thing worries me - 100% expansion target 1.3043 is just below the market, so as a weekly pivot support 1. I prefer to see that market will touch it before any solid upmove, and show some bullish signal in there - W&R, RRT, DRPO buy on lower time frame or something. The target of this possible upmove will be at least weekly pivot point at 1.3265.
On hourly time frame I just want to show you some trend lines, that are in play currently. The breakout of 1.3180 line to the upside, possibly will lead to further upmove...