Lots of things happening and delayed the update. However, there isn't going to be much of a deviation from what I have presented yesterday in "Round 3 - Bear's turn?", 21 Feb Mon. What triggered the whipsaw move this afternoon? 1.3300 held overnight and short squeezed on the back of firmer EURJPY to 1.3371 where semi-official supply capped the move. US investment bank's bid held 1.335ish until an unsubstantiated market talk of German bank profit warnings and a German official resignation, sent the E$ plunging through 1.3300 and 1.3280, flushing stops on its way to print a low of 1.3267. Stronger than expected German ZEW then saved E$'s day giving it the best excuse to squeeze it all the way back to 1.335ish. All these actions but still within the guided range.
Latest order book information:
Stop loss: 1.3240, 1.3260/50 and 1.3405/10
Limit: 1.3260/50 and 1.3395/405
Technically, indicators are turning to neutral and it does appear that the consolidation will continue for probably another day with another test at the upper band. Still maintain 1.3250/60 to 1.3380/90 with an eventual break of the lower band for 1.3200/20 this week.
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| E$ 4-hourly chart - Still range trapped for now |
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