Recap Similar jawboning and again 1.35 defended in an ugly fashion. Surprise jump higher squeezed euro above Y-0 by the end of the week. Closed the week above Y-0 and midpoint.
Outlook On weekly, euro has been in a down channel for a long time. It is now broken to the upside. If euro re-enter the channel, it will have enough fuel to flush down to way below 1.35.
Since we know that is the consequence, so do the officials in Europe. By defending B-0 at all cost, they may be able to pull off a major short squeeze sending euro back up to 1.38 and higher.
Hence B-0 is the line in the sand. Expect messy price action around it in coming 2 weeks.
For more information about this report please refer to the Market Bias Informant pageTrading day for Forex symbols start at around 5 pm ET depending on Daylight Saving Time schedule
Lawrence's Comment
Recap
Upside triangle mentioned last week broken down to the downside and never recovered above the resistance line. Collapsed 120+ points to Y-4 and closed the week at ...
Lawrence's Comment
Recap
Was looking for a breakout and it turned into another tight range week consolidating around Y+1. Closed the week near Y+1 and at midpoint.
Outlook
Potential breakout failure ...
For more information about this report please refer to the Market Bias Informant pageTrading day for Forex symbols start at around 5 pm ET depending on Daylight Saving Time schedule
EURUSD Feb 10 to Feb 14 Outlook
Lawrence’s Comment
Similar jawboning and again 1.35 defended in an ugly fashion. Surprise jump higher squeezed euro above Y-0 by the end of the week. Closed the week above Y-0 and midpoint.
Outlook
On weekly, euro has been in a down channel for a long time. It is now broken to the upside. If euro re-enter the channel, it will have enough fuel to flush down to way below 1.35.
Since we know that is the consequence, so do the officials in Europe. By defending B-0 at all cost, they may be able to pull off a major short squeeze sending euro back up to 1.38 and higher.
Hence B-0 is the line in the sand. Expect messy price action around it in coming 2 weeks.
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