Indeed E$ held the support level and printed a low of 1..3315 before rebounding to a session high of 1.3394 on the back of ECB Weidmann's comment that ECB won't cut interest rates to weaken the euro.
I expect market to consolidate within 1.3300/10 to 1.3390/3400 into Ldn/NY session where the expanded range on the upside to 1.3420/40. I do not expect market to get too directional today ahead of the G20 meeting over the weekend.
3 scenarios for today's NY closing level which will indicate bullishness or bearishness for the E$ next week:
1. +/- 5 pips around 1.3362 (bullish)
2. or a close above 1.3405 (bullish)
3. a close below 1.3280 (bearish)
London order book:
Stop loss: 1.3260, 1.3290 (Large) and 1.3405
Limit: 1.3250 and 1.3300
Technically, market is unwinding its o/b situation with this current correction. Intraday and daily momentum continue to suggest consolidation which at current levels would see more upside potential. However, I am not too keen to engage the market today as the G20 may spring surprises which can overwhelm the technical readings. Expected range 1.3280/3300 to 1.3420/40.
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| E$ Daily chart - Bull trend technically still healthy despite recent correction |
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