After trading in a daily range of 134.00 to 132.00 for the past 2 weeks, the EUR’s overnight session displayed a steady crumble to below S1 at the US market open. These mid pivot situations are typically resolved in the direction of the LR14 and TRAK . . a premise that was supported by the dramatic 65 pip collapse of the EUR from the upper to the lower band of the LR14 channel in only 20 minutes.
Checking both the 60 minute and daily charts suggests an impending test of the Dec 1st 1.3000 lows. On the US equities markets I was expecting a neutral slightly bullish situation at the open if only in consideration of the POMO noted earlier in the week. Given the upcoming Monday’s super POMO I take this as a discounted opportunity to accumulate a few leveraged index shares in SSO and FAS. The only fly in the ointment of course is volume, which has been thin at best. That being said, POMO has demonstrated in edge in promoting positive momentum and Monday looks like a good test of the odds.
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