Not a whole lot on the economic calendar but there is plenty of headline risk out of the Eurozone. Particularly Greece and Italy. US "supercommitte" to reduce the US deficit by 1.5 trillion US$ will be commanding headlines very soon so keep that in mind for the next few weeks..
Also a lot of bond buying by the ECB, repatriation of funds by banks and real demand for the euro common currency as well as Swiss intervention keeping this pair afloat for now.
Don't forget about the power of hopium. Most people are taught to buy, buy, buy when it comes to stocks and other investments and know absolutely nothing about shorting much less how to manage investments... Everything looks cheap to the average Joe right now after being beaten down last week.
Also keep in mind that the retail markets are extremely net long on gold and silver and heavily net short on GBP$ and E$. Don't be surprised to see a big squeeze. I can see this and don't think for a moment the banks and other big boys don't. Nothing they would rather do than to squeeze you into a transfer of your account loss into their account proffit.
Weekly - Price is consolidating and is half way between weekly supply and demand levels. Longer term channel is down. Shorter term channel is up. Trend lines indicate short term price may be accelerating down and weekly candle made a lower high, a lower low and a lower close. The 1.3800 area has historically been a tough area for price.
Daily - Possible bear flag developing... Of course it won't really be a bear flag until price breaks to the downside. Friday candle is indecisive. Price made a higher high, a higher low and a lower close. Price is much closer to demand than supply and has been respecting the short term up trend line and the demand level. 38.2% weekly fib level broken. I'm much more inclined to ride the hopium train for a long swing trade north based on supply and demand than looking for a short at these levels as there isn't much to stop the northbound train after this parabolic panic move down.
240 Minute - Price is clearly bouncing around between supply and demand levels. The 1.3834 - 1.3882 supply area is almost broken as price has pushed deeper and deeper into this level. The demand level below looks like a better opportunity to me for a swing long than the supply level does for a short.
60 Minute - Price is clearly moving between the roughly 200 pip range of this channel. The supply zone above price is almost broken. I do like the virgin supply zone from 1.3922 - 1.3961 for a possible short and the 1.3565 - 1.3607 demand zone for a long entry. With market in "hurry up and wait" mode while they wait for a decision from Greece, I will probably play with this channel both long and short until something changes.
Summary - From a technical perspective and with headline risk having pushed prices down too fast I am more inclined to look for an intraday opportunity to go long on hopium for Monday. I am not looking for a swing short right now until price retraces and is closer to the weekly and daily supply levels and then will pick shorts based on the 240 and 60 minute time frame supply levels.
Also a lot of bond buying by the ECB, repatriation of funds by banks and real demand for the euro common currency as well as Swiss intervention keeping this pair afloat for now.
Don't forget about the power of hopium. Most people are taught to buy, buy, buy when it comes to stocks and other investments and know absolutely nothing about shorting much less how to manage investments... Everything looks cheap to the average Joe right now after being beaten down last week.
Also keep in mind that the retail markets are extremely net long on gold and silver and heavily net short on GBP$ and E$. Don't be surprised to see a big squeeze. I can see this and don't think for a moment the banks and other big boys don't. Nothing they would rather do than to squeeze you into a transfer of your account loss into their account proffit.
Weekly - Price is consolidating and is half way between weekly supply and demand levels. Longer term channel is down. Shorter term channel is up. Trend lines indicate short term price may be accelerating down and weekly candle made a lower high, a lower low and a lower close. The 1.3800 area has historically been a tough area for price.
Daily - Possible bear flag developing... Of course it won't really be a bear flag until price breaks to the downside. Friday candle is indecisive. Price made a higher high, a higher low and a lower close. Price is much closer to demand than supply and has been respecting the short term up trend line and the demand level. 38.2% weekly fib level broken. I'm much more inclined to ride the hopium train for a long swing trade north based on supply and demand than looking for a short at these levels as there isn't much to stop the northbound train after this parabolic panic move down.
240 Minute - Price is clearly bouncing around between supply and demand levels. The 1.3834 - 1.3882 supply area is almost broken as price has pushed deeper and deeper into this level. The demand level below looks like a better opportunity to me for a swing long than the supply level does for a short.
60 Minute - Price is clearly moving between the roughly 200 pip range of this channel. The supply zone above price is almost broken. I do like the virgin supply zone from 1.3922 - 1.3961 for a possible short and the 1.3565 - 1.3607 demand zone for a long entry. With market in "hurry up and wait" mode while they wait for a decision from Greece, I will probably play with this channel both long and short until something changes.
Summary - From a technical perspective and with headline risk having pushed prices down too fast I am more inclined to look for an intraday opportunity to go long on hopium for Monday. I am not looking for a swing short right now until price retraces and is closer to the weekly and daily supply levels and then will pick shorts based on the 240 and 60 minute time frame supply levels.
I don't care which way the market is going as long as it's going my way
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LOL I wish I was.