However, the push towards high of 1.3291 seemed exhaustive as bearish divergence emerges. Technicals are suggesting that E$ should move into consolidation and I expect market to hold 1.3220/40 (see chart) to 1.3280/90 during the Asian session.
That being said, the underlying momentum remains strong at this hour of writing which prompts me to believe that E$ may want to test higher towards 1.3330/40 during the Euro/NY session (probably triggered by the US job data).
I will not discount 1.3380/90 but this level will be a stretch following yesterday's price action and I will be keen to sell at those level for the day.
Stay nimble as I expect choppy price action. Last reminder, its full moon week!
All the best and have a great weekend ahead!!
Update1: Underlying momentum starting to turn neutral which tilts the R/R to sell rally. If one chooses to trade the current range, do not get aggressively long in the E$. Remember, its all about probability!
I would rather head out to the IT Show now than to be tortured by the 10pip range!!
Update2: I have a strange feeling something is brewing..... R/R favoring the short side in currencies and will not discount the lows of this week to be retested.
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