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On an hourly chart, the early high this morning in the long bond ETF hit a 2.618 Fibonacci impulsive target. It's been an interesting run since the low on Friday, February 18th. However, on a short term basis, this 2.618 target should provide some resistance.
Patterns within patterns.
A short term impulsive "price pulse" can be seen on a 1 hour EURUSD chart. The high yesterday (which, as noted in yesterday's post, hit a minor Fibonacci level on a longer term pattern) also corresponded with a major level in a shorter term pattern.
Market action since that top could still be seen as a 3 wave correction of that impulsive move. Look for support from the original top of the base at 1.3739 down 10 pips or so.
Looking at a pattern first examined early last week, and followed up in several posts, including this one from last Thursday:
The target was 1.3765, the 2.618 Fibonacci extension from the base. The rally faded a few pips south of that level and fell back through the 1.618 level, finding support at the minor 1.272 Fibonacci level.
This can be seen clearly on an hourly chart:
Yesterday the 2.618 level was violated. Today initial resistance came in at another minor Fibonacci level, 3.33. But the pullback has been very mild, even with the downgrade of Ireland, and we seem to be on the move again.
If this pattern continues to guide the market wave pattern, we encounter the next major Fibonacci resistance at the 4.236 extension, right below 1.40.
And again on the hourly chart:
