Sunday, October 10, 2010

EURUSD#9 - Weekly Homework

Gotta give more focus on Euro from now on.

Euro has been bullish for some time now. As Mentor pointed out, it will at least test the flat kumo bottom on the monthly chart. Now it doesn't only test, but actually break into the cloud. Tenkan-Kijun is till in bullish pattern on the monthly chart, but this doesn't give much meaning to short term intraday trades.

On the weekly chart, however, Tenkan-Kijun shows bullish sentiment, albeit is arguably a weak one (crossed below the cloud).

On the daily chart, the price action has gone to far above the cloud. This is when PW comes into play to determine wave targets.

In a nutshell:
R3: 1.4180
R2: 1.4030 to 1.4050 (Last week's high, fb66 retracement, level wave targets)
R1: 1.3945 (Chikou support line on weekly chart)

S1: 1.3790 to 1.3840 (last week's support range in smaller time frame
S2: 1.3630 to 1.3660 (last week's low, Chikou support line)
S3: 1.3330 to 1.3380 (current bull run's 50% retracement)

Personally I don't t expect it to go too much above 1.4050 resistance before it comes down to the range of 1.3330 to 1.3380. However, if it 1.4180 is broken, next target might be 1.4485.

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