*Daily Pivots:* S3: 1.3594; S2: 1.3684; S1: 1.3775; P: 1.3833; R1:
1.3924; R2: 1.3983; R3: 1.4042
*EUR/USD:* The go down from the high of 1.3863 on 02/02/2011 unfolded
in 3 waves, ending at 1.3428, signaling that a go up would follow this
correction down. What transpired looks to be still unfolding as price
has retested the 1.3863 to reach a high of 1.3890. We will now use
1.3890 as the key level which must be taken out for further upside
potential. If 1.3890 is taken out then we will likely see slightly
higher levels up to the 1.4000 level. As long as 1.4283 is not
breached, the EUR/USD has room to go lower by all counts. The
indicators I placed on the 4-hour EUR/USD work very well together. I
want to highlight the awe-inspiring oscillator, which shows quadruple
divergence on this time frame. Similarly, we are at the top end of the
Bollinger band, and the Williams %R is topping out. This tells me that
we may make a new high, but it should be small-lived. If we don't
take out 1.3890, then we will drop from current levels and right the
entire go up from the start at 1.3428. We use Elliott Wave to get a
roadmap of what's to follow, but EW is simply a science of patterns
which repeat fractally in every time frame. Once a trader understands
the patterns, one can trade any time frame for profits! Sometimes when
the road is muddy in the larger scenario, and there are multiple paths
to take, it makes sense to drill down to a lower time frame to make
day trading profits and call it a day!
If you are an advanced Forex trader and want to learn Elliott Wave
analysis, please contact me. If you are interested in signing up for a
FREE 60-minute Starter Session, to assess where you are in your
trading, please send an send by e-mail to jody@fxtradersedge.com.
Pleased Trading!
Source: Fxstreet.com
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