Wednesday, September 10, 2008

Mid week update

EURUSD: we now see some stabilisation above 1.41 in the short term, but 1.391 to 1.393 remains our target over the next few days. Obviously we have a well defined channel on the 60 mins chart, and prices could test the upper boundary too, without affecting our mid term scenario.

Indices: I warned of high volatility, congestion with a very limited recovery potential. Prices will have to test lows as a support level now on ES. We also do clearly notice that prices jumped to the exact lower segment [1219-1250] with the lower boundary holding for now. Such level is also a Fib target level.
Certainly not out of the woods yet, but we'll keep an eye on this potential support level. ER2 follows the same route with a potential support level around 705.
Conclusion, intraday traders are short, tightening their stops. I would stay flat waiting for a confirmation of recovery over the next few days. If current support level around lows breaks, another strong support level is around 690 so no panic either...