Has just managed to post yet another 2010 low on Monday, after the market took out Friday’s 1.8135 bottom. However, we are somewhat skeptical of the move given Monday’s lightened trade, and with daily and weekly studies already so well oversold, we like the idea of playing the long trade in anticipation of a long overdue corrective bounce. Although Friday’s bullish reversal candle has been negated today, we do not discredit the formation, and instead take it as a warning sign for a near-term reversal. We would not at all be shocked to see a situation in which the drop below Friday’s low was no more than a game of stop-hunting ahead of the major push higher. Monday’s ATR has also already been exceeded to suggest that additional declines should be limited today. Our short Nzd/Usd trade from Friday was exited at break-even, and we like the idea of rolling our bearish Kiwi bias against the Euro from here. POSITION: LONG @1.8125 FOR AN OPEN OBJECTIVE; STOP 1.7975. POSITION SIZE SHOULD BE 3X TOTAL EQUITY.