Euros staying in a sideways pattern currently..Now this may well be to unwind the overbought conditions currently evident on the 60 min charts... However there is scope to reach 1.3140 before we see sellers back in the market... Now we have a conflict in the technical indicators...short term we could see 1.3140 then sell off...med term we are oversold...therefore any selloff towards 1.3010 should be bought...placing stops below 1.2990...
Now as stated...resistance is at 1.3140....and med term indicators will always take precedence over 60 min indicators therefore if we can break 1.3140 we will see buyers back in the market afraid of missing a move higher with 1.3175/85 then the short term objective. If we can exceed 1.3185 we see 1.3225 as a good realistic target.
Here we would advise buyers to cover longs...we will expect some selling pressure here at these higher levels and we will hold shorts unless a break occurs above 1.3245.
Cable bounced as expected yesterday...but we are struggling at the 1.5880 are and we do
need for the market to break this to see us on our way to 1.5930. We would see a rise to
these higher levels as a good opportunity to re-instate shorts. Short term the market is
overbought, therefore we could well see a corrective move lower down to 1.5830/1.5800...
Now the med term charts are turning bullish...it is not yet confirmed...but I do feel that any
dip lower to these stated support levels will give a good risk/reward trade and would hold
longs at lower levels unless we lose 1.5790.
So...we have the 1.5880/85 to overcome..If we can do this look for 1.5930.. Cover all longs
to here...Re-instate small shorts looking for this corrective move lower..but reverse shorts if
above 1.5960. A break of this resistance takes the market higher for 1.6005 possibly
1.6034/45 where once more we would look to cover...
