Yes, the only blip in the otherwise flatlined market was the result of a better than expected German ZEW number. Despite the good news, E$ took a final test at the support hoping to flush some stop below 1.3320 but failed at 1.3328 before it stabilized around 1.3450 for the most part of the evening. E$ then rallied at the end of the day to close at 1.3386. The bullish "Morning Doji Star" pattern was confirmed by an early Wednesday morning continuation of the rally taking us up to 1.3435 high so far. The short squeeze has begun? Coincidental that S&P 500 and Nasdaq indexes setting records while the Dow industrials coming close to breaking an all-time record close of 14,164.63, set in October 2007?
NY order book:
Stop loss: 1.3290, 1.3295, 1.3320 and
Limit: 1.3250, 1.3280/70, 1.3290 and 1.3320
Technically, intraday momentum has swung upwards with breakaway signal indicating a bottom at 1.33056 has been formed for its next leg up. Pivot remains at 1.3450 and a daily close will increase the probability of a challenge at recent high of 1.3520 with 1.3710 being put back on the radar. If my wave count is correct, this rally is supposed to be an impulsive one (fitting the characteristic of a short squeeze). Expected range 1.3380/3400 to 1.3520/40 with intermediate resistance at 1.3450 and 1.3480. This is one day where I will highly discourage short scalp.
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| E$ Daily chart - 1.3350, bye for now! |
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