Continued Euro Rally Defines New S-T Bull Risk
In Mon’s Technical Blog following that day’s explosive rally we identified Fri’s 1.0682 low as the short-term risk parameter the market needed to sustain gains above to maintain a more immediate bullish count. This morning, after yesterday’s break to new highs above Mon’s 1.0943 high, the market has defined Mon’s intra-day low at 1.0820 as a smaller-degree corrective low the market now needs to sustain gains above to avoid confirming a bearish divergence in short-term momentum. Per such, shorter-term traders with tighter risk profiles can use this 1.0820 low as a tight but objective risk parameter to a still-advised bullish policy. As always however, the benefits of such a tighter nominal risk parameter comes in direct exchange for the cost of higher odds of whipsaw risk.