A strong surge in upside momentum this morningdrove the Euro higher and straight through a Gann Angle/Fibonacci Level Clusterat 1.3044 – 1.3049.
A strong surge in upside momentum this morning drove theEuro higher and straight through a Gann Angle/Fibonacci Level Cluster at 1.3044– 1.3049. The market has since peeled back after the break out and is nowresting on this cluster. Traders should watch this area today for direction asit is most likely to act as a pivot.
With the market up over .0400 since the recent bottom at1.2644, it’s highly unlikely that new money will buy the breakout because ofslippage. However, aggressive traders may take a look at the long sidefollowing a break back to the 1.3049 – 1.3044 zone.
The strong surge to the upside and the lack offollow-through may be an indication that today’s move was exhaustion but we arenot going to know that unless the 1.3049 – 1.3044 cluster fails to providesupport. In addition, a closing price reversal today will be a strongindication that this rally is over at least in the short-run.
Basically, the overnight rally reaffirmed the uptrend, butthe key to sustaining the rally will be whether fresh buying comes in on anintraday correction.