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Friday, May 6, 2011


Currently the Candle Sticks are short.
This Doji formed a Bullish Harami today. Confirmation will be a close above Thursdays close.

Same thing with the Weekly. This long Red candle stick creates a non-confirmed sell signal

15:00 Update:

Fridays always find a way to leave the charts in question. I expect price to approach the top green tine by the close today. Chances seem to favor a bounce off that tine next week as it would be unusual for the fork to fail at the first test

Two days ago I posted an analysis of the EUR/USD. To keep things fair I'll post the same chart with all the same notation.

My Yellow fork failed with almost no offer of support. The blue fork offered some support near the 50 Fib level, but it too was quickly dismissed. I would now look for the Green Fork to end this decline near the horizontal support near 1.4150 if the trend line (not shown but hopefully obvious) does not offer support right here.

I'll have to admit I did not follow my own rules very well when placing the Blue Fork. I rarely use the 0.50 fan. Below I've shown the 0.50 fan in yellow and now the blue fork is placed at the 0.618 fan. As you can see this is a better placement. You might also notice how the 0.786 Fan coordinates well with the Green Fork.

Here is a fork centered on what appears to be an obvious trend line. Breaking this trend line will result quite likely result in price finding support on the lower tine.

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