Quite clearly the market has decided to mark time for the major risk events taking place this week, starting with the Fed's minutes on Wednesday (Thu, 3am Sin/HK) and LTRO report on Friday and not forgetting Italy's election taking place on the 24/25 Feb (Sun/Mon). But let's hope that before we get there, the German ZEW at 6pm (Sin/HK) today can stimulate the otherwise lacklustre market.
Looking back at the past week or so, I noticed that there were several attempts at the 1.33ish support level but ultimately E$ closed above 1.3350. Reckoned when the "buyers" accumulated enough and sellers get exhausted, a vicious short squeeze will kick in and push rate to test the DMA21 (red) and then the previous high at 1.3520. Of course, in all things, nothing is absolute. This view will be invalidated or delayed if market breaks and close below 1.3280.
London order book:
Stop loss: 1.3265/60, 1.3290/80, 1.3295, 1.3320 and 1.3405
Limit: 1.3250, 1.3265/60, 1.3290/80 and 1.3320
Technically, intraday oscillator indicator are quite mixed but with a slight bias towards higher price action as there was a bullish divergent signal, though still premature to confirm if it will pan out. For today, I maintain a range of 1.3290/3310 to 1.3420/40.
 |
| E$ Daily chart - Still trapped but supported |
No comments:
Post a Comment