Article originally published on the stock sage
After topping just above 1.3230 over the past couple of days $EURUSD has fallen back below 1.31 into an important zone of moving average confluence – A break below today’s low of 1.3040 could set the stage for a test of the big psychological round number at 1.3000. Peter L. Brandt believes that the January 27th high of 1.3234 could be an important high for the year due to the January effect. The analysis of the COT data by Steve Briese which Peter posted yesterday was very enlightening, Mr. Briese wrote:
“There is nothing in the COT–including the record split between commercial bulls and CTA bears–that negates the long-term bearish euro outlook or bullish dollar forecast”
These are strong words from a highly credible expert source which should not be taken lightly. For my part I view EUR/USD as a battleground with which I am not particularly interested in becoming involved until some of the smoke clears. However, it will surely make for interesting spectating over the coming days as the bulls try to defend the 1.30 level once again.