1.3329 is the .382 of the structure that is relative to the low made in December of 2016. This means this level carries a lot of weight, but also means the margin of error around the level is very wide. Price can break below by 50 pips or more and then find buyers, so expecting precision in this area is not the best idea.
Also keep in mind, if this momentum persists, it is within reason for price to retest the 1.3051 reversal zone boundary. The point being there is a lot of room for this market to breath if it is going to find a short term bottom.
This bigger picture view helps to highlight the potential for day trade shorts since that is what momentum favors. In terms of swing trades though, risk of reversal starts to increase dramatically especially below 1.3329. This means do not short and hold.
At S.C., we are evaluating this situation for reversal patterns which are nonexistent at the moment. The reason is if price action can construct a reversal formation, the potential is high since the first target is at the 1.3770 area which is the .382 of the current structure.
We are not looking to capture 400 pips, but a quarter of that is within reason, and worth it if we can keep the risk at 50 pips or less.
The EURUSD is also in a similar situation, and we are evaluating opportunities in the Gold market as well (obviously a play on the Dollar). Check S.C. for recent articles on how we are navigating these markets.