I was not able to post due to a mayor overhaul on my computers over the last few days, so this might be a longer post than usual.
Buyers not only defended it, but stepped up to retest the other key area I was watching 1.2960-1.2980 from a while ago. Once that are was pushed by buyers, there was little resistance above. Specifically since it was a weak area, as explained in previous posts.
What I am trying to point out here, is some key areas that I´m watching which usually experience action (either on the buy or sell side), as you can see from the chart below. They are not perfect, but quite accurate nevertheless.
I will then clean-up the charts, but first wanted to gain some perspective and keep up for the lost time.
As I´m writing this post, Spain Investment grade rating has been confirmed by Moody´s, right after the US Market closed, which provided fuel for 75 pip rally in Euro into the Asia session. For those somwehat familiar with my blog, you are already aware about how much I respect vertical developments in terms of the intended direction of the asset in question. They tend to denote a change of character in the asset in question. The rally penetrated imporant areas of previous selling in an effortless manner, action which should be taken into account.
What to look for? I have marked some key areas I´ll be watching in the following sessions.
SELLING AREAS: The upmove stopped in an area where sellers have stepped up previously, as noted below 1.3118-1.3182 – specifically I´ll be looking at 1.3152, which is the POC, barely surpassed on the previous moves, before the retracement took place. Although overextended, the vertical development should have to be neutralized by an equally important move to the downside. Regardless, I would not be surprised to see a retracement, provided the overextension of the range
BUYING AREAS: 1.3062-1.3029 is weak area. The first meaningful area for buyers to defend is 1.2925-1.2978. Below, 1.2916-1.2890 & 1.2877-1.2848
Also, important to take into account are the POC´s, marked in purple.