E$ continues to stay offered against a weakened technical picture as euro negative fundamentals overnight drove the pair to break through the tough support at 1.2950 and flushed stops down to 1.2923. This opens up the next support band at 1.2850/80 and put 1.2650/80 back on the radar. As long as E$ is unable to close above the 1.3120/30 pivot level and below the down channel trendline, bears will continue to have an upper hand despite waning downside momentum, which makes long side scalp risky as evident by my buy call yesterday. Signals continue to be mixed as the daily trend indicator also suggest that E$ is ready to reverse the recent sell-off. Amid this contradicting environment, I am not able to feel the rhythm of the market and it gets tougher committing to a view. This may also explain why the Asian sovereign name has not been appearing for the past one over week.
European order book across the market:
Stop loss: 1.2850, 1.2920 and 1.3005/10
Limit: 1.2880/60
Technically, intraday indicators are nearing o/s levels but definitely not extreme yet. Intraday momentum is starting to turn lower to coincide with the daily signal. Price action does look heavy going into the eurozone's employment number, which can inject volatility. I see 1.3000/20 to cap with support only coming in at 1.2850/80. I would have to place this as a low percentage call for now while I await for further development to get back into the market rhythm.
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| E$ Daily chart - Rejected at DMA100, gravitating towards DMA200 |
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