€uro fairly balanced within 1.3140-1.3020 – I would like to wait and see a break of the balance area.
Although there´s negative divergence in place at the time of writing, I am being specially careful with, specially after the afternoon move.
Thus, some ideas to take into account:
a-) REJECTION OF HIGHER VALUE AREAS WHILE STILL IN BALANCE: Sellers take control within 1.3140 and price retraces back towards 1.3040.
b-) REJECTION + SELLERS IN CONTROL
this will bring the pari back into the 1.3020´s, which will not hold due to sustained selling pressure.
1.3020-1.300 is a key value area – I would be looking into 1.2940 if the former gets breached, followed by 1.2880
c-) REJECTION + BUYERS IN CONTROL
In this event, continued selling pressure provides some fuel and price shoots upwards – In this event, I will be looking into 1.3180´s, as an important price point. It should provide some sort of reaction, possibly a good area to see a retracement. Price action at that point will provide the extent of the reaction at that point. Above, I do not see much until 1.3260. Above 1.3350 is key.