EUR/USD briefly retested overnight lows around 1.2337 on a weak inflation read from Germany, but very mixed data from others ahead of heavyweight NRW prompted a marked rebound towards 1.2400. the Union address kicks off a busy line up of risk events, with the FOMC concluding its 2-day meeting on the last trading day of January and NFP looming on Friday.
Seems like EUR/USD to have found a good dynamic support on the 10-day moving average and will try to push upward once again. My Stochastic is showing a bearish divergence, so no longs for me now. I'll try to ambush bulls @ 1.2484.
The US dollar Index remains vulnerable under the 89.000 handle as January draws to a close and month end portfolio hedging signals continue to flag sell signals. EUR/USD looks solid above 1.2400 and around the 1.2433 level (200 MMA).
Option expiries of note for today's 15:00 GMT
EUR/USD: 1.2375 (776M), 1.2400 (1.3BLN), 1.2450-55 (1.7BLN), 1.2500 (3.6BLN)
So we may see a brief test of the 1.25 handle before it commits to the downside so I'm adjusting my short entry to 1.2500 instead of the previous one @ 1.2484.
Joined Mar 2008
Status: Name real with real own way
As monthly in driving seat , not easy to correct or take more times than expected & stayed away till apparent decisions . anyway bull set up still active at top small or medium, do a great bo , hold the grip & then correct to clean the face & GO further !!Take care , fontu