Each Monday, when I look at Friday’s Charts, I normally get an affirmation of why I don’t trade the last day of the week. Today is certainly no exception as I notice the crazy Price Action (PA) within a tiny 40 pip range. As I write this, PA is 1 pip away from where it opened on Friday – I rest my case.
With the new Month, has come a new Pivot formation – Monthly has dipped sharply to reflect the fall from late October through the first week of November, setting the Pivots up in perfect Bullish order. Fibo fans will be seeing that scenario, as the very point where the aforementioned fall, is set to resume.The top of the H4 Pennant #1 is converging on the top of a bearish Flag #2 at a critical Fibo level. This confluence area looks set to provide the trigger point that proves which sign is the right one.
The Day Ahead
The Pennant’s ResistanceTrendline seems a logical target for PA today so I’m Bullish to that point. Perhaps some early UK selling, prior to a test of last week’s High.
High Impact News – CET
|2:30pm||USD||Fed Chairman Bernanke Speaks|
|4:00pm||USD||ISM Manufacturing PMI|
May your Monday be Magical.