Engulfing all the way...

Overnight comment from ECB Weidman sent E$ down to an intraday low of 1.3001. This resulted in 3 consecutive days of engulfing candlestick pattern, a very rare occurrence indeed!! Fundamentally, with his comment that ECB might adjust interest rates if new information warrants it, it has become a perfect storm for the E$ as on the other hand, the US Beige book was interpreted as more on the hawkish stance. Though the underlying tone is bearish, the easy money going short E$ is over and we are in the zone where we should be mentally prepared for whipsaw and volatile price actions.
Event risk today is the Italian Presidential election.

Primary trend: Bullish
Intermediate trend: Bullish (until 1.27447 is breached)
Minor trend: Counter-directional consolidation before another wave lower (but can't get overly bearish when nearer 1.2920/50)

Asia order book: (no update on the European book yet)
Stop loss: 1.3205
Limit: 1.3195/200 and 1.3220

Technically, shorter intraday indicator has unwound its o/s condition though the longer intraday is still in o/s levels (not extreme). Shorter intraday oscillator indicator indicates consolidation but longer intraday momentum is still pointing lower. One has to take note that E$ has breached several technical levels and coupled with a weak close yesterday, spillover momentum should take us another wave lower. Expected range 1.3060/80 to 1.2930/50.

E$ Daily chart - 3 consecutive engulfing pattern days!! Last one wins....

E$ Daily chart - Rejected at upper band, testing lower?