EUR/USD Daily Update, Wed 05, October 2011
Good morning,
market has not shown any impressive price action yesterday, but still there is something to discuss...
First, on daily time frame market has formed inverse Hammer pattern, so it could become our beacon of further price action. If market will take it low, then downmove will continue. Until this will happen, we can expect some retracement.
The first target of this retracement on daily is 1.3440-1.3470 K-area and pivot point.
On 4 hour chart, I see potential B&B "Sell" with 1.3230 target. Also pay attention how market has reached 1.0 target at 1.3158 by small W&R.
The major question now is Has B&B started already or not. If we will take a look at hourly chart and extensions, then we might say, that market has reached 0.382 resistance and Agreement with 0.618 target, and probably can start move down right from here, 60 min trend has turned bearish.
From the another point of view, market could try to reach 1.0 extention around 1.3375-1.34 first, and only after that will turn to downward move. That is the task that we have to resolve now.