The 20-day MA often proves to be an excellent pivot so as we have been trading below it for the last 10 days, I would now use it a potential entry level. The possible H&S which has been threatening to form has parameters now at .9650 and 1.0000 and we should see the former tested first if a topping formation is to evolve.
If bearish, look to start building shorts around the .9925/30 level with a complete stop-loss on the strategy above 1.0035. Cover shorts below .9700 and then look to re-sell an exhaustive spike back towards parity. As I said earlier, patience is required here but the good thing is that the technical picture is giving some exact levels to work off. (One note of caution, technicals tend to be less reliable as we get into thin markets around December time).
