The fact that EU broke the all important line of demarcation that signifies long to short at 1.3214 Wednesday after the release of the FOMC minutes, now says we have a short EU market. We are now in sell rally mode.
Many tout the 1.3240 level to sell corrective pullbacks. This level is a minimum pullback since its only the 5 day average target. 1.3188 was yesterday's 50 day average target so hence the reason for its technical significance today. More importantly, 1.3185 was yesterday's 100 day average level so its break is another statistical significance. Further, this break will call continued EU levels in coming days. My target at this level is currently 1.2956 but will change slightly this morning before market opening.
Current EU levels are bounded by my rock solid probability bands at 1.3351 above and 1.3080 below with historic technical significance at about 1.3064. My bands change at a rate of about 20 pips daily so current levels are close until market opening when exact levels are re recorded for the day. For now they represent solid buy/sell levels and should be employed as a guide.
On a longer term, historic basis dating back to Jan 1 1999 when EU first began trading, 1.2830 is not only the longer term target but it just appeared in my MA set up Feb 14. We may see this level touted in coming days as a target.
For now, 1.3285 should we see that level is a solid statistical sell point.
My target for now is 1.3147.
I'm Brian Twomey author of Inside the Currency Market