Trendlines the magnet....

Negative fundamentals emanating from Greece and Portugal helped the market decide after several days of consolidation between the daily Ichimoku cloud (1.2990/3000) and the bunch of MAs (1.3055-85). Admittedly, I was hoping to see E$ move higher before I fade into that rally targeting the lower band of the intermediate trend range. Now that E$ has broken out of the consolidation, near term picture remains bearish for the trendlines from around 1.2860 to 1.2800 (see chart). But before one jumps onto the bandwagon, watch the o/s signal and take advantage for better entry level.

Europe order book:
Stop loss: 1.2905/00, 1.3070-80 and 1.3100/10
Limit: 1.3055 (opt) and 1.3070-80

Primary trend: Bullish
Intermediate trend: Range from 1.28 to 1.34
Minor trend: Bearish for 1.2800/50

Technically, intraday indicators have all gone into o/s level and current rebound is unwinding that extreme condition. At this moment, various intraday momentum indicators are showing mixed signals but the daily and weekly ones are pointing lower. This may suggest an intraday shortcovering from here before E$ retest today's low of 1.29235 either today or tomorrow. Top of daily Ichimoku cloud stands at 1.2995 and DMA100 at 1.3050 are the formidable resistance. Only a daily close above 1.3090/3100 can relieve the near term bearish pressure.

E$ 8-Hourly chart - Daily MAs won and trendlines targets for now but....