Neckline in focus but wait.....

E$ broke through WMA50 at 1.2890 and close the day at 1.2886, further reinforcing the near term bearish tone. Selling came to a pause after stop loss orders were tripped at 1.2845, printing a low of 1.2843. Up till this point in time, the probability of the Head & Shoulder formation materializing is getting higher and the critical level to watch is 1.2745 (previous low) and 1.2760/70 (neckline). Eurozone CPI at 5pm (Sin/HK) and US Weekly Jobless Claims at 8:30pm (Sin/HK) should inject some life into the market.

Europe order book:
Stop loss: 1.2800/790, 1.2850 and 1.2900/05
Limit: 1.2950

Primary trend: Bullish
Intermediate trend: Bullish for 1.33/1.34 (unless 1.27447 is breached)
Minor trend: Mildly bearish (Up / Down market, can't get overly bearish when nearer 1.2790/1.2810)

Technically, intraday indicators are in o/s zone. Shorter intraday momentum indicator is suggesting consolidation but the longer intraday is still pointing firmly lower. In view of the mixed technical signals, I am mentally prepared for a squeeze higher before retesting yesterday low again. Strong resistance stands at 1.2940/50 with today's expected range 1.2910/20 to 1.2800/790.
Note: I will not get too bearish sub-1.2800 this round as the intraday indicators will be at extreme o/s levels by then.

E$ Weekly chart - Staying convincingly below WMA21 (red) and briefly below WMA50 (green)