However, EU has seen selling pressure. A short traded at 1.3683 and has targets at 1.3490 area and so far is holding a series of shorts lower. A look at the bigger market profile picture shows me that we are right at the Nov. which was a naked level that the market obviously wanted to test. The question here is do we now head higher or do the bears stay in control and take us even lower? My guess is we head higher but will need shorts to break here.
We are currently sitting in a 15 minute extension short in our potential buy zone which is a 50% retrace from the November lows at the 1.3300 area. For now my assumption is that the shorts will continue and break the long. I will not anticipate the break. If it does I will be looking for pullbacks to get long and see if we can now test the December now that November has been tested and caused a failure of the shorts.
If we continue lower we likely head to 1.3355 and then potentially 1.3250. If the long breaks I will look for shorts into these level.
Market Profile: http://gyazo.com/4c00fa059ec33f828fe618682455d26c