Indeed the only motivation yesterday was to seek out the stops at 1.2920 and 1.2900. But E$ managed to hold 1.2891 despite rumours of stop loss orders in the 1.2880/85 region. Heard there was reserve money interest and E$ bounce off to close the day at 1.2930.
Since there isn't much to report on, I shall share with all my longer term view of how I see the E$. E$'s daily indicator which was in the o/b zone is starting to unwind following these recent days consolidation and I expect this to continue for another couple of weeks within 1.2800 - 1.3170. I do not have any technical indications of an end to the E$'s bull trend. Instead, I see a healthy consolidation after the recent parabolic rally for the next phase of the bull run to tackle the tough resistance band of 1.3400-1.3500. The long term dilution in the value of USD through QEternity is far reaching and I am not surprised to see E$ heading towards 1.4000 in the months ahead.
Order book is quite empty. The only ones are 1.2880/85 for stop and large limit buy at 1.2850/55.
Technically, intraday indicator has gone into o/s levels and market should continue to unwind that condition. There are also signs of bullish divergence and this will re-enforce my view of buying the dip yesterday. Momentum is also starting to turn from consolidation to up. No change in the expected range, 1.2890/910 to 1.3040.
All the best and tomorrow's update will be delayed. Cheers!
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| E$ 8Hourly chart - Staying above |
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