It’s been awhile but we saw a perfect storm in the EUR overnight, accompanied by clear Dipper and Little Dipper entry signals and subsequent triple digit returns. The Dipper produced 100 pips and the LittleDipper produced 50 pips as we took out the sweet spot of the EUR slide from 133.00 to 131.00 . . another example of the EUR’s affinity for whole numbers.
Price was actually looking optimistic going into the start of the European session (8:00), but 133.00 has been a recent line in the sand that’s been hard to overcome. The persistent selling that ensued until the US market open (14:30) was almost unrelenting excepting a 2 hour squat bar at 131.50, followed by a 50 pip plunge in just 20 minutes than conformed the OL (orange line) tattletale. 2 hours into the US equities market and the EUR looks poised for a possible short term rally (and I emphasize short term) before a likely retreat back to the OL. Things could get interesting at this level and I’m inclined to pull back on lot size for now until the trend becomes more transparent.
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