Here below please find attached the video-analysis of the Euro FX currency futures for today May 30th:
Yesterday I wrote about a possibility for Euro to keep moving higher and today the Euro delivered. The Euro continued higher piercing that 1.3047 level, meaning that the offer coming in the area above the 1.3000 and to that level is now gone, out of the market. Price also dipped well within the next and last area of offer (before the larger 1.3240), starting in the 1.3020 area and ending above 1.3076.
If the 1.3078 level is pierced on the upside (and I anticipate that happening, but do not it for sure) I will not be interested in swing shorts any more. Price would then be set to retest the 1.3240 for the second time, and we know that second tests are dangerous tests. The retest of that area is especially important because bears will need to decide whether they will keep their swing short positions initiated around the 1.3240 area, or will let the market continue higher, by covering shorts.
I won’t be there with my position to test that. I will exit shorts above 1.3078. If we break the 1.3078 level we are not likely to go up into the 1.3240 area in a straight fashion. We will move there not before we get some sort of price retrace. I have identified an important anchor (level from which I trace the Fibonacci studies to identify price structure and setups in the current market conditions) and that is the 1.2880 level. This level is being used by Program Trading at the moment and I suspect it will still be important after/if price breaks above 1.3078 and in case we continue higher into and through the 1.3240 area and price breaks the 1.3357 level.
If the 1.3357 level breaks bears will be all gone into the woods and the Euro will have again an opportunity and free way to move all the way into the 1.41 area in the coming weeks/months.
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