After rejecting off the lows on friday forming an intraday pin bar setup, the Euro has built up small gains, but has done so via corrective price action telling us the buyers are not coming in any strength. Usually, this type of price action leads to a more impulsive sell off in the near future so I am looking to sell any rallies.
A good level I would look for an intraday short would be around 1.2360 which was a SL (swing low) point in the most recent sell-off before the pair consolidated. This should act as a gravity point for the market to pull back to so will look for price action triggers here.
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Global Market Commentary:
Global indices lost modest ground today as a combination of trade data pending from China (just recently released) and further signs of slowing down in the emerging market economy worried investors. That plus additional signs of weakening in the Eurozone with Holland just having its credit rating downgraded (being one of the more stable EU economies as of late) putting further salt in the wound.
Add in the fact there are still concerns over the ESM bailout fund being a proper mechanism (legal as well), and there are still bugaboos hiding in the woods for the European economies.
The Dow lost 36pts today while Gold and Oil lost modestly.
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