FOREX PRO Weekly June 27 - July 01, 2011

[Joshnix]

daily Gartley 222 reversal

Sive there appears to be a gartley 222 reversal forming on the daily. D point should be somewhere 1.4561 on forex spot. I am selling around that area just a small position and tight stop.

 

[Sive Morten]

Sive there appears to be a gartley 222 reversal forming on the daily. D point should be somewhere 1.4561 on forex spot. I am selling around that area just a small position and tight stop.

Hi Joshnix,
yes, we also have discussed that.

 

[Sive Morten]

EUR/USD Daily Update, Thu 30, June 2011

Good morning,
although market has reached Agreement around 1.4440 it has not shown any reversals or W&R in that area. Even further - it easily stands above that area.
Although we can see reversal patterns in 1-3 days, since this is a daily time frame, such behavior makes me think, that CD leg could be extended, for instance to 1.27 and 0.786 resistance initially 1.4540-1.470 + daily overbought.

Since all trends are bullish, we need to search possibility to enter Long.
On hourly chart we see, that market moves inside parallel channel. And 1.4370-1.4380 is a nice area to watch for enter long. This is confluence support and trend line support.

We can start to talk about bearish environment again only if market will break this area to the downside.

 

[fan]

Hi Siva,

On my 1H &4H chart, it shows a bat berish, and price now hit 2.00 extend

 

[Sive Morten]

Hi Siva,

On my 1H &4H chart, it shows a bat berish, and price now hit 2.00 extend

Hi Fan,
You're right. This pattern we also can call as "Bat".

 

[Sive Morten]

EUR/USD Daily Update, Fri 01, July 2011

Good morning,
although market has not reaced yet our target around 1.4540 (1.4580 in spot quotes), bullish context is still intact. Market freely holds above 0.618 resistance monthly pivot and 100% target of daily AB=CD.
On daily time frame I do not see any new. Current price action is inside one in relation to yesterday's trading day. Here we see that there are no real barriers for the market till 1.4540 area.

On 4-hour chart we see new monthly pivot at 1.4407. So, I suppose that market should not show deep retracement. We can count on 1.4407-1.4425, but not lower, because this will lead to couple of negative moments - breaking of nearest confluence support, moving below monthly pivot point and previous highs and breaking the trend line. That is not what we want to see in bull trend.
So, the logical level to enter long today is 1.4425. Stop could be placed below Confluence support on hourly chart.

Hourly chart also shows that 1.618 target stands in the same area as daily targets - 1.4540. Also, pay attention to hidden bullish divergence. Usually it indicates that uptrend should continue.

 

[yousuf]

Reversal

Hey sive, do you think entering long is a good idea if we get a cheap price to buy?

I ask this because in my opinion a reversal might be coming soon, with all the greece, ireland and portugal drama, the fact that ECB might NOT hike rate next week and other european problems.

On technical analysis, we have the gartley 222 pattern coming up soon too, so shouldnt we be sitting on the side lines and look at the bigger picture?

Im also going to read the chicago mercentile exchange report today and report what the pledges are for next week in terms of long and short position.

All in all i think we might have possible TOP forming and a reversal is coming.

 

[timsar]

Hi sir, Thank you. Could you please say if this is a DREPO sell on 4 HR Assie? Thank you, have a good weekend

 

[Sive Morten]

Hi sir, Thank you. Could you please say if this is a DREPO sell on 4 HR Assie? Thank you, have a good weekend

Hi Timsar,
Potentially yes. Excellent thrust up, first close below 3x3 is not deep. Now you need to get close above 3x3 and then below again - this will be confirmation bar.
Prefferably if tops will be almost equal.

 

[Sive Morten]

Hey sive, do you think entering long is a good idea if we get a cheap price to buy?

I ask this because in my opinion a reversal might be coming soon, with all the greece, ireland and portugal drama, the fact that ECB might NOT hike rate next week and other european problems.

On technical analysis, we have the gartley 222 pattern coming up soon too, so shouldnt we be sitting on the side lines and look at the bigger picture?

Im also going to read the chicago mercentile exchange report today and report what the pledges are for next week in terms of long and short position.

All in all i think we might have possible TOP forming and a reversal is coming.

Hi Yousuf,
May be you will be right, here is much depend on trading style.
I prefer to trade what I see. Currently market has bullish bias. When I'll see some bearish signs, probably due the events that you've mentioned - I will act accordingly.
It's hard currently just enter short, because daily trend is bullish and market is showing strength. We need clear patterns to enter short.