FXstreet.com (Barcelona) - Tuesday's convincing break higher towards 1.0530 expanded further until a profit-taking sensitive area around 1.0580 was hit - new 3-month high - followed by a pullback to 1.0546 - s/t trendline support - which has paused the correction from a market that remains, according to the latest IMM positioning, with specs at record longs.
According to David Solin, partner at foreign exchange analytics (FXA), "the seasonal chart points higher over the next few weeks, adding to the view of upside pressure into the of the year." While the analyst sees a longer term topping formation near the ceiling of the triangle/pennant, he suspects "another few weeks of ranging before the final top is seen."
Mr. Solin, thinks that after "another week or 2 of topping favored (and the market nearing the key ceiling of the large triangle), its not seen as the time to chase." The analyst advices a very short term bias, "looking to fade extremes and being aggressive with stops (to maintain a good risk/reward), but with expectation of a bigger picture chance to short a few weeks ahead" he adds.
According to David Solin, partner at foreign exchange analytics (FXA), "the seasonal chart points higher over the next few weeks, adding to the view of upside pressure into the of the year." While the analyst sees a longer term topping formation near the ceiling of the triangle/pennant, he suspects "another few weeks of ranging before the final top is seen."
Mr. Solin, thinks that after "another week or 2 of topping favored (and the market nearing the key ceiling of the large triangle), its not seen as the time to chase." The analyst advices a very short term bias, "looking to fade extremes and being aggressive with stops (to maintain a good risk/reward), but with expectation of a bigger picture chance to short a few weeks ahead" he adds.
