E$ continues its consolidation with an upside bias, forming higher highs and higher lows in step fashion.
Buy stop orders were triggered as expected in the 1.3150/60 region before it drops back towards 1.3100.
Heard the next batches of stops are lurking around 1.3190/00 and 1.3020/30 region.
The main reason why I took longer to write today's blog is quite simply.... I don't know what to write but to say "Ditto" to yesterday's.
Looking at the mirror image of the head and shoulder formation (see eclipse), I hate to say this but we are probably in for some serious consolidation.
A few considerations at this stage:
1. Market got overly bearish after last week's plunge towards the neckline
2. SNB re-drawing the line for EURCHF from 1.2000 to 1.2500
3. E$ oversold condition has pretty much been unwound but not reaching overbought yet
4. Waning downside momentum on the daily chart
Putting them together would leave some room for E$ to push higher.
However, that being said, I must warn that the intermediate target remains at 1.2700/2800.
Therefore, amid these uncertainties, if I am compelled to give a trade recommendation, I would forego the long side trade (unless I am seated right infront of my screen the whole time) but to maintain sell rally at the major resistance levels at 1.3200/30 (1.3250/60 news induced).
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