Falling asleep and watching EUR/USD over the past 2 days seem to have gone hand in hand.
With every bear on the planet seeking its demise, and a complete lack of “shock factor” over the Greek bailout, and in addition to bad press plastered all over it, EUR/USD remains buoyant, stressing the need for an insanely simplistic view of the forex market.
On the orders board, bulls seem to have vanished in the short term. Orders are stacked up above price moreso to the downside, whereas any heavy buying pressure appears to be racking in around last Friday’s close.
Short term, I’m conciencious of a couple things here from a technical standpoint:
-Yesterday, events were focused on GBP, where EUR/GBP took the brunt of attention, and the Euro remained stable
-The demand lines supporting the pair are adding up
-Influx of sell orders are centralized just sub 3300 and directly above
-Market has not lost attention of this Friday gap, and breaks on these trendlines are going to be one of the more obvious telltales of follow-through
-Risk for capping downside still includes the 3200 handle.
-I am not so focused on the origin of this original spike (starting from the high 29′s) at the moment. Not enough catalyst.
We’re only talking about a hundred or so pips here to that close, and now that we’re more in a cyclical environment, you can expect the attention going both ways . For now, stick with the obvious….we’re in a partial “wind-up” mode.