E$ has met my initial bear target of 1.27/2800.
So what now?
E$ shorts from the 1.2960/70 region should take profit now if you have not already.
Oversold conditions coupled with bullish divergence signals have suggested limited downside from here and have increased the probability of a rebound. Short term momentum has turned up but I have yet to see the longer term ones turn. But I reckon if price action continues to consolidate around 1.2730/40 region into the European session, signals should all have turned near term bullish.
Risk/reward favours buying dips for today.
1.2690/2700 to hold (1.2640/50 news induced) and 1.2800/20 to cap.
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