Thursday, July 23, 2009
EUR Bull, Bull, Bull!
by: Mihai Marinescu EURUSD has been quiet lately, however this is not its true nature. My charts indicate that the pair is looking to burst out of this annoying range quite soon, making one of those “I-don’t-stop-to-allow-you-to-get-in” rally which spices traders’ life every once in a while. If you’re into spicy stuff then I suggest you get your senses ready. And your platform So here’s what I see:
After a serious bounce from 1.4277, the pair found support right @1.4161, its previous resistance & subsequently managed to set a higher high @1.4199. The ingredients for a new rally are ready: the red wave (nr.5 on H4/D1 according to my count) now has W1 & W2 complete. What’s next? A possible TL break @1.4232 in the next hours would coincide with the horizontal res. @1.4243 now holding the bulls back. If H4 manages to break through I see EURUSD up @1.4380 – 1.4420 by the end of London session today. In case the initial phase of the rally gives a pullback to the current resistance the momentum could be weaker & the above mentioned targets should be reached after the next US session. Anyway, we are most likely talking about a W3 of 5 & therefore I believe the volatility will be quite high today. Get ready for some sweet action!
My H1 waves indicate that only 1.42 would temporarily cancel this bullish outlook & shorts can only be taken if 1.4160 breaks as well (a possibility but not a probability as far as I’m concerned). We have W3 of 5 blue active on our current black wave (which is probably also a W3!). This is why I’m getting ready for a long-awaited swing towards the upside today (W3 of W3 is in any wave structure THE wave to trade). My MA system is clearly longs on H4 & H1 with SF confirming the current picture & H1 TRIX in bull mode since yesterday & 15min giving a BUY signal 5hrs ago. BUY BUY BUY is for me the word of order on EU today. I am long from 1.4240 & planning to add more once the rally is under way. If I am wrong I will get out of the current long around 1.42 & wait until new signals start to emerge Labels: Forex Analysis, forex signal, Forex Trend, FX Instructor, Market Analysis, Market Trend, money trading, Moving Average |
