U.S. indexes and FTSE tested the 8 week falling MA without penetration and all fell back to close at the days low. The two hour 8 MA turned down but the 21 MA is still up. This means that Asia or Europe can set a new trend before U.S. opens on Friday. There is also a possibility that the trend will be set in the U.S.
Right now before Asia has opened I can not tell where Fridays trend will go. Why this situation is so important is because todays trading could have formed the right shoulder in a head and shoulder formation and a sudden sharp drop could even break the neckline open up a very sharp drop in the U.S. indexes. It is very important to follow Fridays trading until we know what will happen. This is the worst case scenario. Europe has not even covered the gap and the trading is very slow. There are no news during Friday that could start something.
EURUSD has taken a new six months closing low and there is very little left to start the sharp drop. Here as well the daily trading must be followed the whole day if you are trading this currency pair.
I think that a new trial of the 8 week MA will not occur but the technical situation is extremely complicated just now.
Right now before Asia has opened I can not tell where Fridays trend will go. Why this situation is so important is because todays trading could have formed the right shoulder in a head and shoulder formation and a sudden sharp drop could even break the neckline open up a very sharp drop in the U.S. indexes. It is very important to follow Fridays trading until we know what will happen. This is the worst case scenario. Europe has not even covered the gap and the trading is very slow. There are no news during Friday that could start something.
EURUSD has taken a new six months closing low and there is very little left to start the sharp drop. Here as well the daily trading must be followed the whole day if you are trading this currency pair.
I think that a new trial of the 8 week MA will not occur but the technical situation is extremely complicated just now.
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