Since 4th Apr this year, E$ has not closed one day below the DMA21 until yesterday. To add on to the bearish story, it broke below the trendline convincingly (see chart). Though these signals are simplistic but one has to take note and avoid being too aggressively bullish at this stage until the above levels are recaptured. Yesterday, 1.3120/40 proved to be an important support level and breaking which exposed E$ to the next stronger support at 1.3000 which we just saw tested and low printed 1.3005 as of now. Market chatters have it that an Asian central bank (ie. BOK) is recycling intervention dollar into euro at around the 1.3000 is providing support. But rumour of a large sell stop residing at 1.2950 will keep market focus on the downside.
Europe order book:
Stop loss: 1.2950, 1.3000 and 1.3050/55
Limit: 1.3095/105
Primary trend: Bullish
Intermediate trend: Bullish (unless 1.27447 breached)
Minor trend: Consolidation (can't get overly bearish around 1.3000 for now)
Technically, intraday indicator is just coming out of the o/s zone. Intraday momentum indicator shows that 1.3000 is probably very close to the lower end of the band and that would encourage some form of shortcovering. Expected range today 1.2980/300 to 1.3070/100.
Stay nimble ahead of the weekend and don't hold on to a single position. Learn to flip and move with the momentum. I am already on my 8th trade of the day!
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| E$ Daily chart - Below trendline and close below DMA21 (red) |
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