EUR/USD Daily Update, Thu 24, November 2011
Good morning,
Happy Thanksgiving everybody,
Probably today is better to spend time with your family, but for those who can't live without trading there is some interesting issue.
Today's market will be thin probably, due to holiday. On daily time frame we see, how market will accelerates through solid area of support around 0.786 level + pivot support.
In general, on daily time frame we hardly can count on solid retracement till 1.3242 target will not be hit. Weekly chart assumes even lower move...
So, our context for today's session stands at 4-hour time frame. We see that market has not quite reached 1.618 target of butterfly and turned to some retracement. Also downward thrust looks nice - this is acceptable context for B&B "Sell" trade. It is hard to predict from which level it could start, I can say only that either from 1.3381 or 1.3414-1.3418. Second is more probable, since B&B usually reaches significant level of resistance before start.
Also I dare to suggest that the target of this move will not be limited by common 0.618 support of whole counter move, because major tragets stand below current market. That's why it should proceed at least to 1.33
That's being said, wait for sell patterns on lower time frames around 1.3414-1.3418 K-resistance (although it could happen from 1.3381 also - so, this choice is up to you how to enter). Target at minimum 0.618 support form whole retracement up, but more probable further continuation to the downside.