Frankly, like it or not, currencies need to take some direction from the U.S. market though of course corporate orders can still be channelled for execution through their Asian/Ldn offices. Liquidity is definitely sub-optimal and is susceptible to whipsaw price action. This is made worse by the fact that we are in the full moon zone. I have to admit that I am not exactly too keen to engage the market because technical analysis works best in a liquid environment and there will be anomaly like the month end closing which can affect the market differently.
Update on order book today:
Stop loss: 1.2870, 1.2950/60, 1.2980 and 1.3020/25
Limit: 1.2880/85, 1.3000 and 1.3020/25
Technically, intraday momentum is pointing firmly higher coupled with a bullish divergent signal (see chart). This has increased the probability of a base being formed around the 1.288ish level. However, I have to give certain amount of discount on the strong momentum from the surge from the 1.289ish to 1.2949 as market is illiquid.
I remain conservative and will await to buy dips to 1.2840/60 with a tight stop and take profit around 1.2900/20 for today, if I have to trade.
All the best!
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| E$ 2-hourly chart - Bullish divergence |
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