Before we start, may I remind all that we are within the full moon zone from today till next Monday (wolves howling in the background....)
E$ finally broke out of its consolidative price pattern with an impulsive move lower breaking the 1.3200 baseline convincingly. The rejection at the 1.3280/300 resistance band speaks volume for the immediate trend and one would naturally jump very quickly to targeting 1.3000 again (but wait....).
In a bigger picture, the descending triangle formation has increased the probability of pressurizing the 1.3000 baseline. But we should expect some consolidation as it tapers towards the apex which a break will accelerate a move towards 1.27/2800 region.
But before we get there, let's stay focus on what is expected in the next 48hrs.
Based on the move yesterday, I would expect some spillover momentum to test the 1.3100/20 support during the European session. But I am also mentally prepared for a powerful short squeeze thereafter towards 1.3240/60 before the bears take charge again.
1.3100/20 to hold (1.3040/60 news induced) and 1.3190/200 to cap (1.3240/60 news induced).
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