Looking at the Commitment of Traders report, it appears that the banks have a high number of shorts open that they've been steadily closing. When they close more, it will drive price higher, then when they add longs, it will take us into the supply zone. At this point, it is a prime area for them to start adding short again.
All purely speculation based on what I'm seeing though, so we will find out over the coming weeks.
That scenario makes good sense. The dollar is getting weaker and the Euro has been depressed for a while. Will see how it plays out in the next week or so for the retracement and if there is any divergence going on.
reubenroyal
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@nuttydave, Yeah I'm going to watch to see if there is a retracement. Looking to go long possibly today