Recap Rallied to Y+2. As if hitting a brick wall, euro made a hard turn and dropped back to Y+1 and then broken down to retest Y-1. Closed the week below Y-0 and midpoint.
Outlook More problems from euro zone. As long as B-0 / Y+1 is acting as resistance, this will send euro back down to B-2 and probably lower.
However, this is a pullback in terms of the daily uptrend just established last 2 weeks. Until we get more evidence that euro has failed to go higher, like a weekly reversal, will be careful with short.
This week almost produced a weekly reversal should euro closed below Y-1.
For now, holiday mode, light volume, and erratic moves til 1st week in Jan is over.
For more information about this report please refer to the Market Bias Informant pageTrading day for Forex symbols start at around 5 pm ET depending on Daylight Saving Time schedule
For more information about this report please refer to the Market Bias Informant pageTrading day for Forex symbols start at around 5 pm ET depending on Daylight Saving Time schedule
Lawrence's Comment
Recap
Dow provided the reason to go higher but it is ES that showed us what short squeeze can really do. Excluding the Y-1 low, ES did almost 40-point run ...
EURUSD Dec 10 to Dec 14 Outlook
Lawrence’s Comment
Rallied to Y+2. As if hitting a brick wall, euro made a hard turn and dropped back to Y+1 and then broken down to retest Y-1. Closed the week below Y-0 and midpoint.
Outlook
More problems from euro zone. As long as B-0 / Y+1 is acting as resistance, this will send euro back down to B-2 and probably lower.
However, this is a pullback in terms of the daily uptrend just established last 2 weeks. Until we get more evidence that euro has failed to go higher, like a weekly reversal, will be careful with short.
This week almost produced a weekly reversal should euro closed below Y-1.
For now, holiday mode, light volume, and erratic moves til 1st week in Jan is over.
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