The EURUSD started the NY trading day with a tumble. It was showing trend tendencies with a move of 132 pips in about an hour – that was just the last leg. However, it has since shown a little bullish light (see prior post) which has changed the focus and perception of it’s bearish beauty. As a result, positions are squaring.
EURUSD action slows.
Some things that muddied the water:
- The bounce off the low extended above the 38.2-50% of the last leg lower (1.1164-1.1180), and
- Above the 1.1209 level which was the 61.8% of the move up from the 2000 low to the 2008 high.
With the weekend around the corner, and Greek elections to add to the witches brew, the action in the last hour suggests that the big traders might be more inclined to chop it around and do a little position management before the weekend. As mentioned previously, the waters get a little more muddy technically, and with that uncertainty the focus switches toward “take it easy”. Traders market vs. full blown trending market.
The market transitioned. The witches brew has some buy added in. The price is telling the story. The 1.1247 level (50% of the days range now) and the 100 bar MA on the chart above become targets now.
Put a little “buy” in the brew.
