Guest Commentary: MarketVisionTV - Creating a Bear Trap in the Euro!
1.30-1.35 consolidation maintains threat of far too well known Head and Shoulders
* Euro remains vulnerable in the short term to a C=A 1.2900 target
* This should create a Head and Shoulders Bear Trap
* A more obscure short term head and shoulders should help trade it.
The Euro duly stabilized at 1.3030 to set up a pivotal 1.3030-1.3145 consolidation. Although the rally from the last technical new low is a trend sequence there is a risk that this ended an irregular correction and therefore leaves the Euro vulnerable for the next 48 hours in a move to break 1.3030 and the previous 1.30 low to a C=A target of 1.2900. A rally through 1.3145 though keeps the Euro in the broader 1.30-1.34 range projecting at least the 61.8% retracement of 1.3245.
(See Video) Narrowing down to the 5 minute we can see the dynamics of a poorly defined head and shoulders working well enough to project a spike down to 1.3060-65 to end a trend sequence and therefore a selling opportunity later back in the 1.3100-10 region the 50-=61.8% and neckline for a break of the 1.3030 low. Stops 1.3150.
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