E$ rallied on the back of Goldman Sachs "Buy" recommendation on EURGBP during the NY session and pushed the pair to a high of 1.30748, flushing a batch of stop loss orders in the process before profit taking set in on chatters that Commerzbank may need a capital increase in the region of E700-800million. Real money accounts were also seen as active euro crosses buyers. This has in a way supported a near term trend reversal story as each single day price hovers around current levels, the sell momentum is waning as indicated by the oscillator indicators and price action is already forming a round bottom pattern. On the flip side, E$'s inability to close on a daily basis above important technical levels have drawn in sell interest targeting 1.2850/80. It does look like we are into another lackadaisical session but hopefully the eurozone industrial production (1800hrs Sin/HK) and US retail sales (2030hrs Sin/HK) numbers can inject some life back into the market.
New York session order book: (Asian book not updated yet)
Stop loss: 1.2920, 1.2950 and 1.3140
Limit: 1.2880, 1.2955/50 and 1.3090/00
Technically, like it or not, most intraday indicators have moved into the neutral zone except the oscillator has a slight edge on the upside. Expected range 1.2980/300 to 1.3140/50. For those who are long, 2 levels of stop... < 1.2970 and 1.2940 and profit take 1.3130/40 and 1.3170/90. Watch the intraday oscillators, stay nimble and don't forget your trailing stop.
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| E$ 4-hourly chart - Price action starting to form a round bottom |
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