Sunday, July 08, 2007

What's The Story, Morning Glory?

Last week, I spotted something that might be pivotal for days to come (or weeks for that matter). The stronger NFPs should have sent the euro nose diving and it did, but only for a brief moment (bastards!!). Weirdly enough, none of the better than expected US economic data could propel the dollar higher against the euro, which I suspected would be the clues that there is a larger wave of dollar selling lurking at the corner. And equally weird enough, I dont buy it!

Tomorrow's Pivot Points:
R3 = 1.3729
R2 = 1.3684
R1 = 1.3655
PP = 1.3610
S1 = 1.3581
S2 = 1.3536
S3 = 1.3507

Tomorrow's Strategy:
1- Asian high low breakout.
2- Euro needs to take out 1.3655 firmly to remain bullish, possibly retest of 1.3681 high. A break above this level would signal another assault on the upside to 1.3730.
3- Waiting for a sell signal from the Cornflower setup.
4- Buy on dips, 1.3580, 1.3560. To tell you the truth, I don't know myself, everything is up in the air right now, I'll stay on the sideline.

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