So far this evening the Euro has bounced back into the highs of last Friday. Midway into Friday, around 11am EST, sellers reacted to the new swing highs and faded price lower. Therefore it will be interesting to see if the Euro bulls can hold onto and press the gains they’ve earned while Americans were grilling oversized cuts of beef on the grill. For now, the tail is wagging the dog.
What is most constructive about the push higher in the Euro is the health of the price auction taking place. If we look at the most recent profile, we see a well shaped distribution, suggesting a healthy auction occurred and resulted in higher prices. The opposite would be a volume profile that looks jagged with deep peaks and valleys.
Going into tomorrow, I’m looking for the Euro dollar bulls to advance their gains at best or build value higher at the least. Either way, I have a bullish bias in the contract unless we see aggressive selling dictating price back into the long consolidation.
Potential areas of resistance for the bulls are:
1.2640 immediate term. The price bars printed since late Thursday resemble a head and shoulders pattern with the head topping out in this area.
1.2670 comes from the June micro composite and would be a constructive accomplishment from the bulls.
Potential support levels:
1.2595 also from the June micro composite- volume point of control
1.2585 composite HVN
Buyers are strong this evening, but how price behaves when our markets come online could dictate what we can expect this week.If you enjoy the content at iBankCoin, please follow us on Twitter