EUR$ disappoints bears.....

Indeed E$ held 1.3000 and rallied to a high of 1.3119 to clear out stop loss orders as guided in my update yesterday. It held on to most of its gain to close a bullish piercing pattern candlestick. This suggest strong underlying which should have momentum to take E$ higher today to continue with its short squeeze.


My initial take was for E$ to break 1.29738 (previous low) but 1.2950 to hold and yield rebound. That was why I admitted yesterday I was not very bearish the E$ even when the market was threatening the 1.3000 support. Risk/Reward does not pay to be heavily short there. 

Expect correction to be shallow, even 1.3060/70 already formed good support. We should see firm upside price action towards 1.3210/30 through Asian into NY session.


By the way, I should be out bringing my son to the dentist and...... buying the new iPad!!!! 


All the best and I shall update, if any, in the later part of today!


Update1: E$ price action did not materialize as expected and momentum has turned down. Technical signals have become somewhat mixed. Probability of seeing higher E$ has decreased. Will stay out and watch for now. 5.5/10