Update for: 2012-06-04 - 2012-06-10
Posted on: Sunday, 03 June 2012 09:03
Short-Term Trend: downtrend
Our short strategy has worked out almost perfectly so far. EUR declined to just below 1.2345 level on Friday and bounced back. As you could remember I had expected to see strong strong support near this Fibonacci level even if EUR was going to decline further eventually. Actually the wave structure on the weekly chart is now more bearish (please, see our Medium-Term update) and weakness all the way down to 1.12 is now more likely than before. But here, on the daily chart, the picture is a bit different: as long as the 1.2345 level holds, there is a chance for a stronger rally. So, I am happy with the decline that I have already captured here. Now, it is time to stand aside and to see what the market wants to do. But if one's still short, they should of course continue to favor the dowside because the daily downtrend is very strong. The only problem is there is not a close stop near the current market levels....
Strategy: The hypothetical short position from 1.2800 reached its target at 1.2350 (+450 pts profit). Stay out now.
Next Update: Sun, 06/10/2012.
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