Something's brewing here...

A bit of action and some good fun for intraday players yesterday. It seems these low levels are fiercely fought, yet no change in our market outlook...

EURUSD: 1.27 is now a STRONG resistance level but shows weaker energy levels. Our preferred scenario is the continuation of current drifting with steps on 1.257 then [1.251-1.253]. Obviously, in absence of intrinsic energy, EURUSD will be more sensitive to exogenous factors.

ER: Here also, lower highs and lower lows should normally indicate lower support levels. However, the stunning recovery on day close proves that 437 is still going strong. We will check for a channel breakout to change our mind. Until then same drifting, i.e. cautiously short.

ES: Fib/ MM target levels concurrently on 828 have been tested successfully, but there is still no underlying conviction the market is ready to turn around just yet. Here too, we'll check for a channel breakout on the daily chart.

NOTE: We may see a final purge coming these next few days. Our ES target is 812, or even 772 ! (lower time frames recommended)