A much better than expected set of US employment numbers sent E$ plummeting to 1.2955 low on Friday to almost cover the full range of the previous day's bullish engulfing candlestick. However, more crucial, 1.2950 held and subsequently rebounded to current level of around 1.3005. Obviously, market just refused to reveal a clear signal just yet despite the bullish candlestick pattern on Thursday. As guided in "New signals..., 8 Mar", a close above 1.3120/30 pivot would have been a good indication of the bulls having an upper hand, though they will still have to contend with 1.3180/200. As long as market stays below the DMA100, the bears have an edge. Important support at 1.2950 must hold. A break will expose 1.2850 with stronger support at 1.2660/80. Meanwhile, the rising tensions on the Korean Peninsula can be the source of near term intraday volatility.
I have not received an update on the CFTC COT report yet.
Asian order book across the market:
Stop loss: 1.2950
Limit: 1.2880, 1.2950 and 1.3090/00
Technically, intraday indicators are coming out of its o/s levels but signals are mixed on the momentum through the different time frames. Daily momentum however remains bearish and that should constantly be a guide to any bulls out there for the time being. Resistance are at 1.3050, 1.3120/30 and very strong at 1.3180/200. At this moment, those holding on to their long E$ should take part profit below the resistance levels with risk below 1.2940. I still see a slight edge for the bulls. Expected range 1.2960/70 to 1.1.3120/30.
 |
| E$ Daily chart - A base is being formed |
No comments:
Post a Comment