Boy, are we surprised that Spain got downgraded... "wink".
E$ continues to pretty much hold the baseline at 1.3180. Any further push should see 1.3135/45 supporting. From what I have gathered, the same Asian sovereign name was seen on both end dictating the 1.3180 to 1.3260 range.
After yesterday's moves, the large offer and stop loss orders mix at 1.3240/50 were flushed. This morning, following the news release by S&P, small sell stops below 1.3200 were taken out. Now, I reckon we should have new buy stops built up at 1.3260/80 region by the new shorts in reaction to the downgrade.
Technicals continue to support another wave higher towards 1.3280/300 which somehow coincides. Do note that its month end and liquidity is sub-optimal, therefore price action can be choppy. Admittedly, I was caught in the roller-coaster ride last night..... strong stomach, survived!
At this moment, I must warn that I am actually only neutral to slightly bullish the E$ beyond 1.3300. Sadly, I am only inferring based on what I have gathered looking at other currency pairs.
Whatever it is, stay focused on today's range and I hope to wrap things up before the weekend starts! :)
1.3170/80 to hold (1.3135/45 news induced) and 1.3280/300 target.
No comments:
Post a Comment