A very potent full moon this month indeed. With one more burst in reaction to the weaker than expected German Flash Manufacturing PMI number, E$ cleared another batch of stop orders to print a high of 1.3254, which is at the top end of my intermediate term range. At this stage, I have to believe that the risk/reward should start to favour holding short E$ with the next strong resistance at 1.3360/80. Signs of a bull USD resurgent has surfaced as we scan across the spectrum of USDxxx.
Europe order book:
Stop loss: 1.3080
Limit: 1.3125/15 and 1.3390
Primary trend: Bullish
Intermediate trend: Range between 1.2800 to 1.3200/50
Minor trend: Mildly bearish
Technically, longer intraday and daily indicators are in o/b zone. Intraday momentum continues to point higher following the surge to 1.3254 though signs of bearish divergence signal has emerged. In the days ahead, E$ is expected to fall back to the bunch of technical supports ranging from 1.3020 to 1.3090. For today, trading range from 1.3250/60 to 1.3150/70 (expanded 1.3120/30).
 |
| E$ Daily chart - Top range of intermediate trend hit |
A$ has finally broken the ascending trendline (chart does not reflect) after a rejection at around the 0.9300/20 resistance level forming a triple top. This will put pressure on the pair to test pivot at 0.9150/70 before falling back to the low end of the range at 0.9000/30. Like I have mentioned before, 0.8870/900 is a level to be reckoned with and one has to hold back being overly bearish when nearer for this round.
 |
| A$ hourly chart - Resistance band around 0.9300/50 and the support trendline |
No comments:
Post a Comment