E$ surged in NY to 1.35878 high taking out barriers and technical resistances (Fibonacci 61.8% @ 1.3535 inclusive) with ease. However as expected, month end profit taking should put initial pressure and start a corrective move lower. Heard from the market that starting from 1.3600, at every 50 pips, there are barrier options up to 1.3800.
Asia order book:
Stop loss: 1.3410/05 and 1.3450/40
Limit: 1.3380 and 1.3480
Technically, intraday indicators are in o/b levels and momentum is starting to turn from up to consolidation. However, daily and weekly momentum are still pointing firmly higher. At this moment, 1.3580/90 provides initial cap for a move back to 1.3520/30, first support. But bearish divergence signal has emerged and I feel a deeper correction to 1.3430/40 is highly probable in the next 48hours. Do note that, one shouldn't get overly bearish the E$ amid this correction because we are in a very bullish E$ trend and one must look out for buy opportunities rather than get obsessed and add on shorts especially from the mid-1.3400 onwards.
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| E$ Weekly chart - WMA21 and 50 crossover |
The rally has fizzled and momentum is starting to turn down now clearly indicating a correction is underway. Look to take part profit around 0.8520/30 and the next level at 0.8490/500. Remember your trailing stop.
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| EURGBO 8 hourly chart - Bearish divergence |
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