E$ price action unfolded as forecast and the following technical signals have reinforced the bullish scenario:
1. Bullish piercing candlestick - a reversal signal
2. E$ closed high enough for an open today to be above upper trend line
3. There are a couple more signals but since market has already taken off, let's stay focus on the profit taking part which is more crucial.
By the way, as I am typing, the last known stop at 1.2930/40 has just been cleared.
Taking the recent high of 1.31718 and yesterday's low of 1.2828, the fibonacci retracement ratio are as follow:
61.8% - 1.3040
50.0% - 1.3000
38.2% - 1.2960
One should mark down around 10 pips as a guide for profit-taking basing on the above 3 levels unless you are seated right infront of the screen to monitor the price action. Another level to watch is 1.2975 and 1.3100 (news induced). In the next couple of weeks, we may be stucked within 1.2828 to 1.3100 as E$ consolidates further.
All the best and have a great weekend ahead!!
|E$ Daily chart - The signals|