Into the 1.2225 fib and trend line support
If we get another “sympathy ” drop on the back of equities or bonds into the 1.2150/70 zone I’ll add with a stop below the 50% fibo of the Dec-Jan rally which lies at 1.2128 .
I’m finding EURUSD has digested the selling well despite what’s been going through this week. I believe the short term market could be running a bit short in the hope EURO catches up with the rest.
IF the US yields top out ahead of 3%, I also suspect these January longer term USD sellers could come back into the market. I doubt they’re fully done as they pushed it a little to fast to quickly at that stage and may be just waiting for the storm to calm down. Hence I’m using the 50% of the move as a reference point.
Depending on whether I get the second leg, I will have manage it differently on the way up.
-Only one leg means we’ll have found a bottom close by -> I’ll keep it running for a retest being 1.2380.
-2 legs done, I will take half off in the 1.2345-85 area and reassess.