Can you actually beat that.... Nowotny's comment can actually trigger a 100+ pips rally in E$? Great, now you are wondering who Nowotny is!!! Clearly, it was a well disguised short squeeze to trigger the main bulk of the stops above 1.2140 and close the gap at 1.2160 (Vicious cycle... , 25 Jul).
My order at 1.2178 was a touch too high but glad I was seated infront of my screen and still managed to go short at decent level.
Stop loss orders from yesterday revealed that a good amount of the buy stops were flushed by the move where it touched a high of 1.21703, the remaining large ones were residing at 1.2040 and 1.2010/00.
Technically, E$ closed with a bullish engulfing pattern yesterday and it is a bullish reversal signal. This should give the E$ bulls a sense of reprieve. However, after studying all other available factors, I have given this signal a discount for now but will still be kept at the back of my mind. Shorter term momentum is pointing to consolidation with slight upside bias. As we are nearing the top end of the bearish channel where the resistance stands at 1.2180/90 for today, it will be interesting to see how the E$ will react. I remain E$ bearish on a weekly basis and would still prefer to be on the short side from appropriate levels.
For today, 1.2180/90 to cap, stronger resistance at 1.2210/20 and 1.2090/80 to hold, stronger support at 1.2020/40.
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