"Never say die".....

Good morning folks, its midweek already!!

Don't you love the "never say die" attitude of the E$? :)

It only fell to the low of 1.2569 before it rallied strongly on the back of positive comments from the G20 meeting. It finally ran out of steam after triggering the buy stops above 1.2720 to print 1.2730 high before falling back.

Technically, the piercing pattern from yesterday's price action has increased the probability of further momentum for E$ to test Monday's high of 1.2747 later today where stops are heard to be lurking above (see chart).

US FOMC will be the main event for the day but that will be more than 12hrs from now. In the meantime, E$ should consolidate to form a sturdy base for its next move higher. Short term momentum has turned down but price action has to be monitored closely to check if the longer term momentum continues to point higher through the Ldn/NY session.

For today, I continue to look to buy dips. 1.2620/30 to hold and 1.2790/800 to cap.

E$ Daily chart

All the best!