E$ came alive as it whipsawed as expected during Friday's session in reaction to the US employment data dropping to a low of 1.35727 before it turned to rally to the high of 1.3711, taking out the 1.3700 barrier. But E$ came off the high to close around 1.3608 as profit taking set in when market talk of potential verbal intervention from ECB officials on the recent strength of the euro. Uptrend remains very much intact and it takes a close below 1.3520/30 to show first sign of weakness. Major risk event will be this Thursday's ECB rate decision.
CFTC's COT report: Speculative accounts added on their net long euro position to +27,472 vs +21,381 the week before. Net short yen position at -71,246 vs -64,068 the week before.
Technically, intraday indicators are in o/b levels and in the process of unwinding. Intraday momentum has turned from up to consolidation and Friday's high of 1.3711 should now be the near term cap. For today, I expect market to stay very much within 1. 3600/20 to 1.3690/700 with 1.3540/50 to 1.3820/30 being the weekly range.
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| E$ Weekly chart - 61.8% Fibonacci ratio target @ 1.3830/40 |
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