Oversold

Hello Folks

Why didn't someone tell me how much fun holidays were I would of done it sooner (haha), anyway just wanted to share a thought process with you. I was perusing the COT data from last friday this morning, and I think the Euro might be getting close to extreme oversold, now please consider that I have barely looked at a chart in the last week so perhaps my thought pattern could be totally wrong, but 150K short contracts last friday that's starting to smell like oversold to me, at the very least I think we might see a relief rally of a few hundred pips if for nothing else but profit taking.

I do make one pre requisite and that's we hear or see nothing stupid from the euro zone or any of its players that would push a dose of fear back into the market. The euro needs in my opinion a break and some running the other way would be nice for a change and also give us some fresh ground to look at. I said some time ago that $1.20 on EUROUSD is certainly achievable and we are very close to this area now, will we get there, I am line ball on this and prepared for anything as usual.

Well that's about it, as usual great trading everyone, see ya soon