Thursday, 12 September 2013

E$ supported by the crosses...

Reference "Awaiting for stronger signals....", 10 Sep, E$ rebounded after low of 1.32295 and high so far 1.3325, pausing after it achieved the 61.8% fibo correction. This has completed the next wave I anticipated. Important to note too is the emergence of the bearish divergent signal (see chart) but still premature to confirm. Though E$ has closed above the DMA21 at 1.3289, I am still refraining from getting too bullish. Additional support comes from the rebound in the EURxxx (sent tweet out yesterday to warn against getting too bearish EURxxx for now).

Europe order book:
Stop loss: 1.3330
Limit: 1.3230/20 and 1.3325
Order book looks very boring and therefore I do not expect anything exciting out of E$

Primary trend: Bullish
Intermediate trend: Bearish for 1.3000 (invalidated if 1.3452 breached)
Minor trend: Consolidation with slight upside bias

Technically, E$ is slowly nudging the intraday indicators into o/b zone, though not extreme yet. Intraday momentum continues to point higher. Combining other technical signals, I prefer to trade on the short side when nearer 1.3350/60. However, one would have to observe for fading intraday momentum. Expected range 1.3280/90 (1.3250 extended) to 1.3350/60.

E$ 2hourly chart - Bearish divergence around 61.8%

No comments:

Post a Comment