What now?
The news headlines on Greece led to a snap back move higher in the EURUSD (they can come at any time unfortunately).
The move took some of the wind out of the trend move lower seen in the NY session (started in the London session). The move higher squeezed above the low from yesterday afternoon and the low from the Asian Pacific session. It also moved above the 38.2-50% of the trend leg lower outlined in my last post. The technical waters are now muddy.
SO what now? With the waters muddy, it means the buyers and sellers could be pushed. Looking at the 5 minute chart below, I redrew the Fibonacci from the high of the day to the low of the day. As you can see, the 50% has held so far. This is also the close from yesterdays trading. This is a new line in the sand for the day that traders may hinge bullish or bearish on going forward. On the downside a move below the 1.0860 and staying below will be eyed.
It kind stinks that Greece headline took away the punch bowl from the bears, but such is life when markets are influenced by the never ending saga.
