True enough, E$ broke higher during the NY session from the spillover momentum from Monday albeit in a very choppy fashion but capped below 1.2980/90 (Golden Cross... lagging? 2 Oct Tue). That was how the market tested the psychological aspect of one's trading by moving against the grain of the fundamentals.
The last effort spike (from 1.2930 to 1.2968) to flush stops at 1.2940-50 does look exhaustive as price started to drift lower subsequently. Bearish divergence emerged as E$ was rejected, increasing the probability that a very short term top could be in place for this round.
Stop loss orders seem to have dried up after last night and last heard was the only noteworthy large limit order at 1.2800.
Technically, shorter term intraday indicator is at o/s level and that should provide support for a counter direction move higher. However, momentum continue to point to further consolidation which implies that E$'s upside should still be limited. Current defined range is 1.2810/30 to 1.2960/70. Very strong support can be found at 1.2740/50 (see chart) but E$ must bounce off if tested and close back above the pivot of 1.2800/20 to sustain the bullish tone.
For today, there are 2 ways opportunity but if my forecast comes true, we should be first selling into the retest of yesterday's high and then look to buy around the lower band either during NY session or tomorrow. Price action will continue to be choppy, therefore stay nimble and don't forget your trailing stop.
All the best and have a great Wednesday!!
 |
| E$ Weekly chart - Strong support around 1.2740/50 |
No comments:
Post a Comment