Market flushed out most of the weak longs on this sell-off and touched a low of 1.2919. Bullish divergence has emerged and this signals a potential near term base and expect E$ to rebound into the defined range of 1.2910/20 to 1.3160/70 for now. I may have wasted an opportunity to go long the E$ the day before yesterday but the sell signal was consistently reliable and in the end was well rewarded. Admittedly, targeting E$ to hit 1.28ish was an extreme call to mentally prepare myself in the event of an overwhelming piece of news. Nonetheless, I am still very happy with my trade.
From yesterday's book, the only stop left can be found at 1.3060. Large limit orders were heard to reside at 1.2855/60 and 1.3020/30.
Technically, intraday indicator is close to o/s levels. With E$ hovering around the lower band of yesterday's range and with momentum turning from down to consolidation, it offers E$ some room towards the upside. E$'s ability to close at 1.2968 yesterday is a positive signal and this should provide some kind of support for at least the first half of the trading session.
For today, I believe the E$ should retrace this week's losses targeting the Fibonacci ratio levels, particularly the 61.8% mark. Risk should be contained to yesterday's low.
All the best and have a great weekend ahead.... one thing for sure, I know I will!! :)
 |
| E$ Hourly chart - Fibonacci Retracement Ratio |
No comments:
Post a Comment