Failure to extend lower warns that a larger correction is underway in the EURUSD towards 13820-14030 as either a 2nd or B wave. Near term structure is unclear (which probably means in itself that a larger correction is indeed underway). Sentiment readings such as COT also suggest near term Euro strength as speculators hold a record amount of Euro short positions.
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Friday evenings), technical analysis of currency crosses on Monday, Wednesday, and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forum. He is the author of Sentiment in the Forex Market. Follow his intraday market commentary and trades at DailyFX Forex Stream. Send requests to receive his reports via email to jsaettele@dailyfx.com.
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