Indeed, E$ came off to the support level at 1.2990/1.3010 and it subsequently rebounded to a high of 1.3076. My recommendation to buy dip was called off because a conflicting bear technical signal emerged and I am willing to forego an opportunity than to make an exception and in the process create confusion in my calls in the future. Though E$ bounced off the low of 1.2993 during the early NY session, it has not re-captured the pivot at 1.3085 where it could have opened its door for the recent high to be retested.
Order book is getting busy again and stop loss orders were residing at 1.2970/80, 1.3085, 1.3115/25 & 1.3180. Large limit orders were reported at 1.2930/35, 1.2980, 1.3165/75 & 1.3200.
Technically, E$ closed a 'doji' yesterday and it indicates that market is uncertain and took a neutral stance closing at or near its opening price. Intraday overbought/oversold indicator is neither in extreme zone though the daily and weekly ones are in o/b level. Momentum is starting to point to consolidation > down. As I have mentioned in 'Comfort zone' (19 Sep Wed), I expect further consolidation before its next wave higher. But with the latest signal, it has increased the probability of a deeper correction into 1.2770/1.2800 before it resumes its next bull target of 1.34/35.
For today, I prefer to be on the short side with risk to 1.3090 and looking at 2 levels for profit-taking, 1.2970/80 and 1.2850 (looks abit far tho :))
All the best!
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| E$ 8hourly chart - Recent price action too steep |
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