FOREX PRO Weekly June 20 - 24, 2011

[Sive Morten]

EUR/USD Daily Update, Fri 24, June 2011

Good morning.

On the daily time frame there is nothing really new. Market holds the bearish bias.

On 4-hour chart we see solid pullback due to fundamental decision by voting to escape the Greece default. Its unnaturality confirms by hourly chart - see V-shape reversal. That's very common to fundamental events. Reversals by technical events usually have W-shape bottom.

So, since today is Friday and just some hours ago the important decision has been made, probably to do nothing today is a wise decision. Because we do not know yet - how rest of the market will react on that.
I prefer to take a clear look on weekend and make some plan for Monday.

Still, if you intend to do something -
hourly trend is bullish, while daily is bearish. It tells that market probably will show deeper retracement. Picture on 4-hour chart with butterfly is just an assumption. Usually, during Butterflies, market shows 0.618-0.786 retracements.
but for better confidence I prefer to see couple of things before enter short:
1. reaching of some strong resistance on hourly chart;
2. Moving market below pivot again and shifting trend to bearish.
Only after that, probably it will be relatively safe to try enter short. But, again, will market have enough of time to show all these things till the close - who knows...

 

[timsar]

Hi Sir. price is below 3*3 on weekly, if we get a close there then it`s a Double REPO sell? Thanks

 

[Icarus]

Hi Sive,

Is this a diamond formation on the 15 minute chart of EURUSD? Or simply a head and shoulders? Or possibly both? If it is diamond formation, what is the usual target of a diamond?

 

[Sive Morten]

Hi Sir. price is below 3*3 on weekly, if we get a close there then it`s a Double REPO sell? Thanks

Hi Timsar,
I wouldn't call it like that. Yes, thrust is nice, but first penetration is too deep and has reached significant Fib support. Second - tops are too different. They should be almost similar.

Hi Sive,

Is this a diamond formation on the 15 minute chart of EURUSD? Or simply a head and shoulders? Or possibly both? If it is diamond formation, what is the usual target of a diamond?

Hi Icarus,
Diamond is relatively rare pattern. To be honest, I do not definitely remember about the target, but I presume to suggest that this is the height of diamond in direction of breakout - as with H&S pattern is a length between head and neckline.
Still, on 15-min chart it is hardly diamond. Perfectly, diamond looks like two triangles, combined with each other. So, perfect diamond should not have a price chart right in the corner of the rumb. But I'm not a big expert
May be it makes to search some pictures in the net.