EUR GU EJ 22 Feb

EUR - D negative close stopped at the next identified resistance level 1.3166/W S2 1.3181. 4hr showing lower wicks and divergence, RSI crossed above signal line on an open candle. 1hr showing divergence and the higher low following the divergence played out nicely in Asian session. 1hr still on lower high lower low flow. There is nothing to suggest that this is anything other than a rally in down trend. We could fall today or in two days. Short term counter trend buy (but that ship may already have sailed), looking for return to down trend, bias down.

GU - D closed a hammer and with Asian move up already up 200 pips from yesterdays lows. 1hr on higher high higher low flow. Unless there has been a fundamental shift caused by news would expect some multiple day reversal pattern to play out. Would normally consider a day like to day as opportunity to buy and sell should good set ups arrive. Like EUR the counter trend move up may have gone too much to enter safely. We had hit 50% retrace of last leg down. So now the bias would be to wait for sells.

EJ - D suggests down but for now the move below the 123.00 support level has been rejected. 4hr has not yet closed above RSI signal line/8lwma. Should that happen then a move up attempt might be made.

Friday mornings are often volatile around London open and we do not generally trade that session (often very good trades in the hours preceding).