Tuesday, March 26, 2013

Recap 25 Mar, EUR GU lower high following divergence

EUR - Approaching 1.3050 W R1 to close the gap. D positive close Friday. 1hr flow higher high higher low but we do have negative sell divergence. We can react lower once the gap is closed, if not then the next target will be W R2 1.3112- W R1 1.3164 the body/wick highs from Sep/Oct '12.
Result: 1.3050/W R1 held, a double top going into London open. The 1hr lower high that followed after the divergence played out perfectly.
 
GU - We are at a key resistance level going back to Jan and May (easier to see on W charts). 1hr negative sell divergence. We can react lower from here, failing that next target higher the high from 22 Feb W R1 at 1.5306.
Result: The resistance level held. 1hr lower high going into London open that followed after the divergence played out perfectly.

EJ - Fri closed a doji, on that candle we are below RSI 50 level and below the 8lwma. 4hr and 1hr on higher high higher low flow. Bias up next target the Mar highs/W R1 124.28.
Result: Bias up did not play out. The 1hr lower high before and after London open saw the flow change and EJ followed the EUR down.




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