The strong selloff on eur/usd ended at 118% extension line. It looked like this might get even further, but in the end move stopped at 118%.
Is it time for stronger correction up? Maybe it is. On the other hand we have to remember that on June 20th there is another vote in Greece. This might have a big impact on situation at eur/usd.
For now I look for retest of recent low at 1.2282. If there will be a breakdown below that level, I want to add short positions. For now we might see some continuation of move up, and it is wise to keep Fibonacci retracement lines for last wave on chart. For the smaller wave we hit 61.8% retracement last week:
But it is possible that correction may be stronger and that is why we also should look at retracement lines from bigger wave:
Bulls from S&P500 decided it is time to do something and we saw some pretty nice gains. Again, move down ended at 118% Fibonacci extension line.
Does it mean that bulls will dominate again? It is too soon to tell. There are some major resistance lines ahead S&P500 and we will see how strong bulls really are.
For now it is wise to be careful with trading decisions. There are some bad news here in Europe about Greece and maybe Spain so you do not know for sure what the next week will be like. On the other hand bulls still want to play the ball, but as I said there are some major resistances in the way.