Wrote an essay on the fundamental backdrop for this trade setup and lost connection which has resulted in having to re-type what was already a too long to publish piece, needles to say I can't be bothered, so here's the short story.
EURO 0.236 held the lows + resistance now support TL, beak below should have bulls haircut positions and re-establish at lower levels, COT reinforces this view. Would confirm current Cypher C point at the 1.13 C.P.
Break above 1.13, very likely if the 0.236 finds more support buyers even with Italy news borne in mind, players clearly don't care about Italy as it hasn't been doing much anyway for some time, ie. priced in as negligible as the Euro has not been pricing in strong fundamental Italian contributions, has it?
Resolution of trade this week probable based on NFP and ECB event risks. Bullish bias favoured for more topside gains to higher C points, confirmed without question if weekend news sees more dip buying and defence of 0.236. Shorts already had a whipping on Friday's squeeze to the very edge of the PA range.
Assessment: More gains expected only on confirmed 0.236 defence target the 0.886/1.27, short on weakness, may just offer temporary bounce before some more gains, unlikely though.
EURO 0.236 held the lows + resistance now support TL, beak below should have bulls haircut positions and re-establish at lower levels, COT reinforces this view. Would confirm current Cypher C point at the 1.13 C.P.
Break above 1.13, very likely if the 0.236 finds more support buyers even with Italy news borne in mind, players clearly don't care about Italy as it hasn't been doing much anyway for some time, ie. priced in as negligible as the Euro has not been pricing in strong fundamental Italian contributions, has it?
Resolution of trade this week probable based on NFP and ECB event risks. Bullish bias favoured for more topside gains to higher C points, confirmed without question if weekend news sees more dip buying and defence of 0.236. Shorts already had a whipping on Friday's squeeze to the very edge of the PA range.
Assessment: More gains expected only on confirmed 0.236 defence target the 0.886/1.27, short on weakness, may just offer temporary bounce before some more gains, unlikely though.