Each time when other currencies were having fun on risk on days, E$ always gets caught between tectonic plates as EURxxx ie EURAUD, EURCAD & EURJPY sprang to life. That aside, I reckon we may continue to be in this state at least till after the Spanish bond auction tomorrow.
A$ has retested the bear channel trendline and along with USDJPY, both rebounded strongly. But they should take a rest at this stage. Incidentally, the risk of a major risk off event has come off significantly after recent A$ and USDJPY's turnaround at major support levels.
Based on the past 24 hours price action in E$, it is highly likely that it will correct Monday's rally. Quite similar to the mirror image in the eclipse on the left (see chart). Nothing exciting but range trade within 1.3055/65 to 1.3200/20 on first test.
For those who are looking for big moves, like I always say.... go play 36 holes. But don't forget, gems can be found in tight ranges too! :)
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| E$ Head & Shoulder formation |
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