The Euro is at a critical s/t juncture as we believe is in the latter stages of the recovery from 1.2625 and therefore begs the question soft or hard top. Now the failure at the new high of 1.3320 the conservative target is enough but given Friday's failure to maintain the reversal shifts the emphasis to losing 1.3155 to confirm the reversal to 1.3025 and 1.2930.
Until then the market clearly remains within pivotal consolidation and therefore still consistent with that October 27th price action that not only broke the equivalent of the 1.3320 high but provided an aggressive 'hard top' blowout to the equivalent of 1.3580 within 24 hours of that break. Since the C=A from 1.3625, I personally have lowered the stop on my short to 1.3330 but we will look to square again in there is no follow through on the downside in favour of that aggressive spike first.
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By Ed Matts, MarketVisionTV.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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