Friday, December 12, 2008

Adrenaline rush...

What did i say yesterday !?!? i sometimes think my crystal ball is worth millions...
€/$ broke out quite strongly and rose about all day. Not a single red bar until 7PM !
A retracement, even if quite mild is now necessary to 1.32, or possibly to 1.3075
We can see that a provisional Fib Expansion pattern would take EURUSD to the highs mentioned recently. Let's wait for support for now though.

ER: we turned to lower time frames as it hovered almost directionless on the 1H chart. WE have now retraced to a strong support level around 440 (MM + Fib) where it could and even should bounce. I have told several times on this blog that we are not heading for a smooth recovery (weekly entropy has not even bottomed yet), so we'll stick to lower time frames or remain very cautious.

ES: similar story... I thought yesterday 875 would hold (MM + Fib) but the market decided to test Fib PR2 from which it could and probably will bounce back. We'll remain cautious until that support level is firmly tested (check MTFS pattern for confirmation)

Great trading to all and see you monday for the weekly report.

(posted 1:20 AM Eastern)