Update for: 2011-03-07 - 2011-03-13
Posted on: Sunday, 06 March 2011 13:24
Short-Term Trend: uptrend
Outlook: EURUSD has moved up as expected and now the trend on the daily chart is considered a strong uptrend (up from the previous weak uptrend definition). The wave structure however, remains unclear at this point as all three alternatives discussed earlier remain valid. To recap, these alternatives are: 1.) the market is already in the next big bull market that is supposed to bring gains abv 1.6000, 2.) the market is still in wave (E) of the Triangular pattern from the 2008 top or 3.) the wave (D) of this Triangle is still under way). The 1st and the 3rd alternatives suggest higher prices, so we give the benefit of the doubt to the upside. A move abv 1.4045 is likely to bring gains twd the 1.4570 level.
On the downside, below 1.3830 negates, signals a retracement of the most recent gains is under way....
Strategy: Holding long from 1.3560 is favorable. Stop=1.3815. Target=1.4410
Next Update: Wed, 03/09/2011, 09:00 - 10:00 CET