"V" shaped recovery (Update1)

Good afternoon friends.

E$ staged a remarkable "V" shaped recovery after falling to a low of 1.3458 yesterday. Reserve manager interest was cited and the rebound picked up momentum as profit taking turned to short covering and the squeeze continued into NY to top off at 1.3597 before closing at 1.3581. This has formed a bullish piercing candlestick pattern and has increased the probability of further upside push today. As guided in my update yesterday, euro bulls would have gotten very much a clear confirmation if it has closed above 1.3600. But market preferred to leave us pondering and search for more supportive signals instead. For those who have not read yesterday's update, "Trend change? I think not...", do spend some time looking through the 3 charts.

Asian order book:
Stop loss: 1.3400-360, 1.3435/30, <1.3459 and 1.3485/80
Limit: 1.3420, 1.3459 and 1.3635/40

Technically, if E$ continues to stay within this tight range into early Europe, short term intraday momentum will start to turn from up to consolidation which at this level, would be down. Expect initial range to be confined to 1.3530/40 to 1.3600/10 during London session with a subsequent break to upper range of 1.3600/10 to 1.3680/90 during the Ldn/NY session. However, a daily close below 1.3530/40 would hurt the near term recovery with 1.3458 and then 1.3415/3380 back in focus. That being said, its just a deeper and more elaborate correction within a very bullish medium term outlook.

Will provide an update on my bearish AUD view later.

E$ Daily chart - Bullish Piercing pattern countered the Dar Cloud Cover

Update1
AUDUSD

The currency's recent numerous failed attempts above 1.0580/0600 have resulted in market turning around for the path with least resistance. Having just breached the previous low of 1.0345 today, technically speaking, has weakened the technical outlook and will put 1.0220 in focus and subsequently 1.0150 and finally the 61.8% Fibonacci ratio target of around parity. This goes very much in line with my medium term bullish outlook of EURAUD heading towards 1.3500/4000 if we use a simplistic "inverted head and shoulder" pattern for projection.

AUDUSD Weekly chart - 61.8% Fibonacci ratio @ around parity

EURAUD Weekly chart - WMA21/50 crossover