FOREX PRO Weekly July 11-15, 2011

[nicolebobbin]

Hi Sive, will we have another update today ?

 

[Sive Morten]

EUR/USD Daily Update, Fri 15, July 2011

Sure Nicole,

So, in general there is not much to say. Daily analysis is the same.
I just want to share with some worries about 4-hour chart.

If you take close look to it, then you'll see that nature of the downmove looks more as retracement rather that shifting in momentum. So, It could lead to "222" Buy pattern. That is the only thing that worries me in bearish bias.
If we exclude this worry - then yes, our context is 100% bearish.
So, keep an eye on 1.40 area, since this is Agreement of AB=CD target and 0.618 Fib support.
Yesterday we've said that market has not reached 1.618 extension around 1.4266. So, if "222" scenario will happen - probably market will reach it. What will be after that, who knows - it could show W&R and reverse right back, or continue move down.
So, as a conclusion -
if you have bear positions due our yesterday trading plan - you can hold it till 1.40. Then either tight stops or close them or do something, that you as a rule do in such cases.
If you bullish - wait when market will hit that area - and if you'll see some strong white candles there or something that points on "222" - you may try enter.
So, today 1.40 area is a major one.

 

[Icarus]

Sive, Do you think we may have a bullish wedge forming with a new upside target rather than downside target of 1.40?

 

[Sive Morten]

Sive, Do you think we may have a bullish wedge forming with a new upside target rather than downside target of 1.40?

Hi Icarus,
yes looks like you've said. I also draw it as wedge in weekly thread. When I've drawn it I reminded that somebody have told about the wedge on forum. That was you