Last Friday, core retail sales disappoint with a result of -0.3% vs forecast of 0.2%, led to a spike in price and hit a high of 1.12200 before settling back to 1.11600 level as the US trading day progressed.
The price action suggest that a whipsaw and fakey pattern occurred. Which means sellers could be well positioned at 1.12000 level ahead of the FOMC minutes to be released on the 17th, and perhaps Jackson Hole Symposium at the end of the month.
2 consecutive month of +200 NFP data could also give the open market committee leaning towards a rate hike in the near future. With this, forming the D leg (BEARISH CRAB PATTERN) can be much deeper and will revisit the 1.08000 handle.
I remain SHORT until 1.12300 has been broken.
The price action suggest that a whipsaw and fakey pattern occurred. Which means sellers could be well positioned at 1.12000 level ahead of the FOMC minutes to be released on the 17th, and perhaps Jackson Hole Symposium at the end of the month.
2 consecutive month of +200 NFP data could also give the open market committee leaning towards a rate hike in the near future. With this, forming the D leg (BEARISH CRAB PATTERN) can be much deeper and will revisit the 1.08000 handle.
I remain SHORT until 1.12300 has been broken.