Tweezer top

Sorry folks, crashed out after taking my medication this morning and had to forego my afternoon 18-holes :(   Still suffering from jetlag and fever since I returned, but managed to wake up alive past the Mayan 21/12/12 deadline  :)

Last night, market short squeezed E$ to the high of 1.3295 but failed to break previous high of 1.3308 (hmmm, smells fishy again with the 8!). The subsequent steep sell-off formed the tweezer formation which in simplistic term is called the "double-top". As mentioned yesterday, market may not be too keen to take this pair higher into the resistance zone without a sign of optimism out of the US for now. Do take note that liquidity is sub-optimal at this time of the year and spikes/gapping can be quite common.

Order is getting quite busy...
Limit: 1.3115/25, 1.3255/65 and 1.3300/10
Stop loss: 1.3140/50, 1.3170, 1.3320 and 1.3350
Heard the Asian sovereign bid interest at 1.3140/50 has been pulled out.

Technically, almost identical pattern as yesterday with the shorter term intraday momentum indicating consolidation with an upside bias but the longer term intraday momentum suggesting more room on the downside. With the tweezer formation, pressure will continue to be on the E$ to test lower.
For today and possibly over to next Monday, I expect an up>down market with E$ testing 1.3260/80 on the upside before falling back to 1.3120/30.

All the best and have a great weekend!! I feel warmed up already and will share an update on USDJPY next week following my 23/26 November blogs ("8=Prosperity" and "E$ Bulls edged the Bears" respectively).

E$ 8 Hourly chart - Tweezer top formation