Good morning all! Well, it's obvious that the major retracement I spoke about weeks ago is well underway now. If you caught my Business Day article on Thursday last week, you'll remember that I mentioned looking out for the next significant resistance which will be around the 1.4560 level. From today's price movement, I'd say we're getting warm so be on the lookout!
As far as today's trading goes, it's looking kind of so-so. I'm not too eager about taking a Long trade cos the market has gone quite far already. I might be inclined to consider a Short trade if I see a convincing break of the 1.4479 Support line (with adequate momentum too). A Long trade is not toally out of the question either (since the market is currently trending upwards anyway) but the pattern will have to be quite convincing.
If going Long or considering a divergence trade (there is likely to be negative divergence on the 15min chart soon), the level to look out for would probably be around 1.4547 followed closely by 1.4560 (another reason why I'm not hurrying to go Long!).
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