We continued the rally in risk today. Now that the German gave the ok for the salvation of Europe, let's see what will happens.
From now on, intentions will meet reality again and it could not be so easy to deal with.
Anyways, I was looking to euro and cable 1hr charts and saw something interesting.
We are within what was heavy supply areas for both pairs. The market is heavily long on them, as we can see. So, someday the profit taking will start and it can be starting now, with all good news almost out there(you know, we buy on good news... but someone smarter sells on good news...).
Here are the charts. Note that the volume is the biggest in more than one month, happened on an up bar and the result was that the market is falling a bit now. It is very, very early to say something but we'd better keep an eye on how the price develops from now on.
Here is the euro.
And here is cable.