No report today unfortunately traders. I have been called away.
I am neutral currently and waiting for direction to be decided.
I am still short EURUSD.
Good luck trading today, see you Monday
So we seem to finally be in a corrective phase, how long will it last and where will we head before moving up again? I mentioned on Monday that a decent level to pullback to would be between the weekly S1 and weekly S2, we fell just short of the weekly S1 on first attempt and have bounced from the daily S1. Here is a picture of Monday’s prediction
On Monday, the Dax decreases 0.8 percent and yesterday minus 0.9 percent. On Wednesday morning, the stock market barometer, however, was on the road to recovery: The Dax rose – and by 1.2 percent to 9272 points. The current corporate reporting season has crated some good news in the German stock market mid-week. The ECB could soon provide an even better trading atmosphere and the upcoming Governing Council meeting and the publication of US employment data on Friday creates further hope.
If the move continues, and we manage to break out above 10383, we could be completing an extension around 10600 (Fibonacci extension). Some may argue that the Dax does not behave like a traditional forex pair, in terms of technical patterns and respecting levels and sometimes that may be true. But overall, I have a different opinion when it comes to these Fibonacci patterns.
On the hourly chart, we are still massively extended, bears are certainly hoping for, at the very least, a retracement from current levels and I am watching for the bearish divergence clue here as well. The oscillator has started to return to less extended levels, but price remains stretched, so the pattern would trigger an alert if we see higher prices but the oscillator finds a lower peak.