Rejection at major resistance levels in currencies last Friday was a strong signal that the bears are still in control. Affirmation that EURxxx might have bottomed out concomitantly suggest softer price action in the higher yielders ie NZD n AUD.
Still awaiting the last bastion.... USDJPY for confirmation signals that the recent run up has hit the ceiling. If it did, timing for all would coincide and we should be mentally prepared for a pickup in momentum in risky assets being sold off.
E$'s weak close last Friday formed an engulfing bearish candlestick and we should expect further pressure especially today. Don't think support at 1.3050 can hold and we should see E$ challenge 1.2973 (previous low). But 1.2950 may hold for now.
All the best and have a great week trading!
Update1: Expect short covering which should take E$ back to 1.3150/70 region (1.3200/10 news induced) before lower again. The firmer EURxxx is lending support to E$ for now. Would welcome any rally to sell into.
Realized that I may have given all the impression that 1.2950 is today's target. Actually its my weekly target :) Have an enjoyable one!!
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