E$ went on a roller coaster as it swung up to the high of 1.3191 and then spent the rest of the day probing the downside to 1.3053 before settling weaker below the 50DMA forming another bearish engulfing candlestick. This should put E$ under pressure as it sits just above the critical pivot at 1.3050. Probability is further skewed towards 1.2973 being retested, as mentioned on Monday, in the coming days.
Currently hearing good demand (could be EURxxx related) lining up from 1.3000-50 and stop loss orders built up above 1.3110/20. In current environment without much market moving announcements expected, E$ may push higher for the stops before lower again. 1.3050 to hold for Asia, 1.3130/50 to cap.
E$ will need to take 1.3191 out to turn the short term bearish sentiment around.
But whatever you do, go light if you want to trade against the headwind. I maintain sell rally strategy for now.
All the best and have a good one trading!
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