Sive Morten
Special Consultant to the FPA
- Messages
- 18,644
EUR/USD Daily Update, Wed 08, June 2011
Good morning,
Although yesterday situation was a bit blur, today some signs appear.
First of all - we must keep an eye on daily 0.786 resistance at 1.4720 area.
This level is very common as startup of Butterfly patterns. So, if market will start pullback down from this level - this will be early notification that Butterfly is one of possible scenarios of future price action.
Target of this pattern si around 1.52 - weeklly overbought and close to monthly 1.0 Fib extension target.
Second - currently there is not bad thrust up (although a but insufficient) on Daily. We can catch the first signs of retracement with, say, "DRPO Sell" pattern. And ride down a bit to 3/8 or even 5/8 Fib support. That's significant move.
On 4 hour and 1 hour charts there are already signs of weakness appeared. This is bearish wedge is forming + MACD divergence right below daily Fib resistance. Wedge is forming in a shape of 3-Drive Sell pattern. And it's target almost pips to pips coincide with 1.4720.
On houly chart the last part of 3-Drive could turn in a way of Butterfly Sell. This will be perfect for us. It could give us a Confindence to enter short around 1.4720. But be sure that market will not blast through it.
So, that's being said - 1.4720 is crucial level currently. From this small patterns could start very significant price action in medium term
Good morning,
Although yesterday situation was a bit blur, today some signs appear.
First of all - we must keep an eye on daily 0.786 resistance at 1.4720 area.
This level is very common as startup of Butterfly patterns. So, if market will start pullback down from this level - this will be early notification that Butterfly is one of possible scenarios of future price action.
Target of this pattern si around 1.52 - weeklly overbought and close to monthly 1.0 Fib extension target.
Second - currently there is not bad thrust up (although a but insufficient) on Daily. We can catch the first signs of retracement with, say, "DRPO Sell" pattern. And ride down a bit to 3/8 or even 5/8 Fib support. That's significant move.
On 4 hour and 1 hour charts there are already signs of weakness appeared. This is bearish wedge is forming + MACD divergence right below daily Fib resistance. Wedge is forming in a shape of 3-Drive Sell pattern. And it's target almost pips to pips coincide with 1.4720.
On houly chart the last part of 3-Drive could turn in a way of Butterfly Sell. This will be perfect for us. It could give us a Confindence to enter short around 1.4720. But be sure that market will not blast through it.
So, that's being said - 1.4720 is crucial level currently. From this small patterns could start very significant price action in medium term
very tempted when i see this weekly 
