With the way things are currently progressing for the EURUSD, we could see a third retest of the 1.1875 handle as early as this week. Buyers will likely make another stand especially considering channel support which lies just below 1.1875.
However, I’m not interested in buying here. I remain short based on the failed attempt to break 1.2040 on September 8th. If sellers do secure a daily close (5 pm EST) below the confluence of support at 1.1875, I will look to add to the position.
The only thing that would convince me that buyers are not tiring would be a daily close above the 2012 low at 1.2040. Until that time, I will maintain the idea that bullish momentum is slowing and a pullback is in order.
A daily close below the 1.1875 area would expose the August low at 1.1670. A close below that would pave the way for a move toward 1.1490 and perhaps 1.1300.
However, I’m not interested in buying here. I remain short based on the failed attempt to break 1.2040 on September 8th. If sellers do secure a daily close (5 pm EST) below the confluence of support at 1.1875, I will look to add to the position.
The only thing that would convince me that buyers are not tiring would be a daily close above the 2012 low at 1.2040. Until that time, I will maintain the idea that bullish momentum is slowing and a pullback is in order.
A daily close below the 1.1875 area would expose the August low at 1.1670. A close below that would pave the way for a move toward 1.1490 and perhaps 1.1300.
