Euros reacted well yesterday and once 1.2895 was broken, we came to 1.2940 target, reaching 1.2939. Now this 1.2940 area was the trendline resistance, and this morning the line has moved to 1.2929 so this should be the max upside.

We would be selling into strength to these higher levels and holding unless 1.2945 breaks. If we do see 1.2945 broken we look for 1.2970 where all longs should be covered and shorts re-instated Hold shorts from 1.2970 and only reverse them if we break 1.3015.

Now if we hold 1.2910 we are going back and testing the pivot, which today is located at 1.2876, this combined with 1.2862 should offer some support. Initially cover shorts to here. If below 1.2860 we see the market falling to 1.2820/15 where at this point we cover shorts, re-instate small longs, keeping stops then below 1.2795.

 

The article was first published by CharmerCharts