Yesterday, EURUSD just broke above the PZ rallied on CPI data all the way up; as mentioned the rubber band effect can result in a violent up move. EURUSD moved beyond the gap closing level of 1.0800 but instead to the next triple resistance zone at 1.0848 before pulling back now.
Unlike the indices which are clearly bullish, EURUSD closed near the mid point which is comparatively weaker. I see the up move and rejection as a possible overshot and the next move could be down. A break below PZ would be a short opportunity with stops above PZ for a move down to 1.0762 and possibly 1.0724.
Unlike the indices which are clearly bullish, EURUSD closed near the mid point which is comparatively weaker. I see the up move and rejection as a possible overshot and the next move could be down. A break below PZ would be a short opportunity with stops above PZ for a move down to 1.0762 and possibly 1.0724.
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